Sales Management 1935-02-01: Vol 36 Iss 3

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Maxwell Ca

SKIIS IN THE SKY: Kool’s famous penguins
first appear as specks on this 41 x 60 foot sign
above Atlantic City’s boardwalk. They grow larger
and swoop off gracefully as one bird in topper puffs
away. Designer, BBDO; builder, R. C. Maxwell Co.

UP: H. W. Sweatt, former v-p, is
Minneapolis-Honeywell Regulator’s new
president. He, son of one of the firm's
founders, succeeds M. C. Honeywell,
now executive committee chairman.

TALKING CAN: General Foods brags that the improved Calumet
baking powder can speaks right out loud on grocers’ shelves. It
opens, closes easily; a paper inner seal keeps contents airtight,
and when cut on a dotted line provides a handy leveling edge. The
redesigned label, red and white, stands out even at a distance.

“RS RE

To the first printers, ink making day was a holiday
celebrated as a picnic held around the boiling oil pot.

THE PERFECT PRINTING PAPER

manuracty £0 UNDER U.S. FAT WO. 1HI80RS

KIMBERLY-CLARK CORPORATION

Established 1872 e NEENAH, WISCONSIN

CHICAGO, 8 South Michigan Avenue «e NEW YORK, 122 East 42nd Street

LOS ANGELES, 510 West Sixth Street

a, look the arl
of the poulers
VAN EYCK

to make this page

le gible

Tue Type on this page is easy to read today because
500 and more years ago the Court of the Prince
of Burgundy was fabulously lavish in its display
of jewels and furs, velvets and precious metals.

To the painter Hubert Van Eyck, this display
was a challenge to find colors capable of repro-
ducing the splendor of what he saw on canvas.

Calling on his young brother Jan, who was also
a painter, he began his search for such colors.
and after years of experiment discovered a
method of preparing linseed oil to serve as a
foundation for paint. This discovery became the
basic formula from which were evolved both oil
paints and printing inks.

Since the Van Eycks’ discovery preceded mov-
able type by at least four years, it can be placed as
the first step in that series of inventions which
have made modern printing possible. ... And which
have reached their newest phase in Kleerfect—
The Perfect Printing Paper.

To the strength and opacity, essential to any
printing paper, Kleerfect adds two new qualities:

Freedom, for all practical purposes, from two-
sidedness of color and surface; thus insuring
printing of equally high quality on both sides

Improved color that eliminates glare, gives
effective contrast with the greatest number of
printing inks and types of illustrations and perinits
the maximum true reproductive power of on > to
four printed colors.

Before you produce your next mailing. see
samples of the better work Kleerfect makes 10s

sible. A request to our advertising departme! | in

Chicago will bring them to you and the nam. of

the merchant nearest you who stocks Kleer' ‘ct.

—7 8 pee §

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Roger Babson Says:

"Business in Memphis in the early
months of next year should register a
very good gain over the first half of
1934. The outlook for Memphis is con-
siderably better than the average for
the entire country. . . . Building in Mem-
phis has improved about 25%, in recent
months and this trend should be empha-
sized in 1935."

NATIONAL REPRESENTATIVE:
New York Chicago Dallas
Kansas City San Francisco

‘MEMPHIS”...says Babson...
‘has the best
outlook for

1935”

Take a look at your marketing map of
Memphis . . . Babson's best market for
1935. Note the scores of towns in addi-
tion to the sub-cities shown on the map
above. All busier and with more money
to spend now than in the last 5 years.
Bank clearings, retail sales, have been
consistently on the up for 2 years.
Christmas business in many instances ex-
ceeded 1929 tops.

This favored spot is the south's first
market in trading population . . .2,179,-
474. And has a newspaper as great as
the market . . . the Commercial Appeal,
the largest daily circulation south. The
only advertising medium that completely
covers this great community of buyers
at the one cost. The newspaper first in
any classification of sales power in city
or market. You could not introduce
your product to this welcoming market
at a more opportune time. And you
won't find a more intelligent or aggres-
sive merchandising cooperation awaiting
you anywhere.

JAMES HAMMOND,
Publisher

|THE COMMERCIAL APPEAL]

THE BRANHAM CO.
Atlanta St. Louis
Los Angeles

LARGEST DAILY CIRCULATION IN THE SOUTH

FEBRUARY 1,

1935

[113]

-The Human Side-

Good Gaudy!

Solomon in all his glory was not arrayed like one of these
well-dressed gents will be this year. We have it direct from Ray-
mond Twyeffort, chairman of the styles committee of the Mer-
chant Tailors Association.

Solomon had only his colors. We have colors, too, in 1935;
plenty of them—modern plaids, Gulf Stream blue, Quaker grey and
whatnot, for both formal and informal wear, but Solomon had no
streamlining and air-conditioning. We have both. And we are
going to put them right into our clothes. Take Mr. Twyeffort’s
word for that, too. In this he is backed up by P. B. Juster, of
Minneapolis, chairman of the national style committee of the Na-
tional Association of Clothiers and Furriers, which recently met
in Chicago. The average man, he explained, during depression
years wears dull and sombre clothes and sticks to them until they
acquire a high shine. Now manufacturers are preparing for a
season of glad rags. Rougher fabrics, tweeds, cheviots, home-
spuns, quite gay in comparison with recent years—are being turned
out by the makers.

The tailors and the clothing makers are taking patterns from
modern industry. We have airflow automobiles; so we shall have
airflow lapels. We have streamline railroad trains; so we shall
have streamline stripes. Air-conditioned restaurants and theatres
and stores—even hotels—will lead us to more air-conditioned shoes
and hats and suits than the country has ever seen.

But the colors: Men are tired of black—good and tired of it.
They are breaking out right now with the peacock tendencies that
Lowell Thomas admits he enjoys. They don’t have to be rich
men this year to possess low-cost dinner jackets to suit every mood.
Not just one or two blacks: seven or eight maroons, purples,
greens, wines and whatnot. Max Baer has already begun appear-
ing publicly in a dinner jacket of orange pastel with velvet fac-
ings, a black shirt, a tropical sunset tie—oh well, those with Latin
temperaments and good Florida tans are having their day.

Handy Library

By the simple process of turning its time-honored 10-cent boxes
of gummed labels, paper clips, transparent mending tape, thumb
tacks and other stationery “notions” on end, putting “book covers”
around them, and selling them in “‘sets”
of six and a dozen, Dennison Manufac-
turing Company, Framingham, Massa-
chusetts, has given substantial Christ-
mas presents, in the form of increased
business, to a lot of stationery and de-
partment stores.

One department store we heard about
sold 800 dozen of them in its stationery
department at Christmas time.

The sets retail at six for 50 cents,
12 for $1. The name “Dennison” ap-
pears very clearly as the “author” of
each ‘“‘volume.”

G. Lynn Sumner Company, Dennison’s
advertising agency, had a hand in it.

Dennison writes some “books.”

“Know New York”

Lowell Thomas is at the microphone, He is finishing his ney,
broadcast. Bob and Nell Randolph and their young daught.
Dorothy are listening expectantly in Los Angeles. Jack and Hele
Harper, at home in Chicago, and Fred and Ruth Allen, in Pity
burgh, are listening just as expectantly. Ending his talk, Lowe
Thomas smiles, looks at three letters in his hand, and, addressing
each family separately, through the microphone says: ‘I shall }
very happy to be your guide on your long-planned trip to Ney
York. We'll not only see the Big Town together; but, when th
tour is over, we shall know New York!”

According to the plot of “Know New York,” a talking pictur
Bob and Nell and Jack and Helen and Fred and Ruth went t
high school together in some hinterland town. All six of then
are married. They have planned a reunion together in New York,
The plot, unfolding, tells what happens to them there.

The film, which will run two hours, is being produced by Onty
New York, Inc., of 580 Fifth Avenue, New York City. Chie
factors in that company are Delmar W. Beman, also an executive
of the Federal Better Housing Exposition, soon to be held in Ney
York; and Paul Meyer, long publisher of the Theatre Magazine
and recéntly vice-president of World Broadcasting System. Mr,
Thomas is the director and commentator; Lorenzo del Riccio
production director, and Charles Conger Stewart the script director,

To be completed in March, the film will tour more than 20
cities in 30 States, beginning April 1. It will be shown, Mr.
Beman says, to a minimum of 200,000 people in the succeeding
54 weeks. Local showings will be sponsored by universities, cham.
bers of commerce, and other institutions and groups. Not only
will admission be free, but each attendee will be given an illustrated
book of the continuity in story form.

The production and the entire program is being paid for by
advertisers, most of whom have headquarters in New York—
stores, railroads, hotels, manufacturers, etc. As the camera and
Mr. Thomas’ spoken comments follow the reunited six and the
daughter of two of them on their exploration toward and through
the city, there are, of course, “pauses.” It is by no means ac
cidental that the camera will pause for a long shot of a certain
railroad train, racing Eastward across the Jersey Meadows, or that
Mr. Thomas will be heard commenting on a nationally known
hotel as the automobile from the airport brings the Randolphs
to the hotel in which they will make their home while in the
metropolis. Advertisers are paying for it. Twenty-eight adver-
tisers already have signed for it. To have 30 seconds of the
continuity, with effective shots and remarks about your product
or place of business, costs $1,300. Sixty seconds cost $1,500; two
minutes $2,000; three minutes $2,500; five minutes $3,000.

Even flashes are worked out promotionally.. An “exterior flash”

costs $300; a “merchandise flash’ $700.

All this is done, Mr. Beman emphasizes, without interfering
with the flow of the story. Manifestly, a camera following seven
people around New York wherever they go cannot avoid revealing
signs, products, and places of business.

“Know New York” is being worked
out so that the identities shown are
the identities of those who are paying
for this service, and that the emphasis
given each identity is in proportion to /
the amount paid.

The three couples are of somewhat
different income strata, so they travel to
New York by different means, stop at
different types of hotels, and shop at
different stores. All of them, pie
sumably are equally interested in Radio
City, the Empire State Building, Broad-
way, Fifth Avenue, and Brooklyn
Bridge. But even in short jumps from
one place to another, camera and com-
mentator use promotional discretion.

SALES MANAGEMENT, published semi-monthly on the first and fifteenth except in April and October, when it is published three times a month and dated the

frst, tenth and twentieth; copyrighted and published by Sales Management, Inc.,

advance. Entered as second-class matter June 1, 1928, at the Post Office, N.

420 Lexington Ave., New York, N Subscription price $4.00 a vear im

, under the Act of March 3, 1879. February 1, 1935. Volume XXXVI. No. 3.

f114}

SALES MANAGEMENT

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the MORTONS are up on their

FEBRUARY 1,

The Mortons have been electri-
fied these many years. They
have irons and curlers, refrigera-
tors and toasters, heaters in
winter, fans in summer and so
on. This “outlet consciousness”
makes them good customers for
new equipment and_ replace-
ments. Which brings us to the
point: The Mortons are only one
of the hundreds of thousands of
modern families who read the
Chicago American every night.

No other paper in Chicago con-
trols so many young, progressive
families as the American. For
the most part, its circulation is
made up of men and women in
their 30s and 40s—the age groups
that, economists say, are earning
the bulk of America’s income.
Experience should tell you that

such people are The Leading
Americans in today’s consumer
market.

You can be certain that what
was good enough for their
fathers and mothers is NOT good
enough for them. As modern
young people, they value con-
venience and comfort highly, and
are willing to pay for them. But,
by the same token, they’re much
too smart to guess about any-
thing. So it’s up to you, Mr.
Advertiser, to keep them up-to-
date on current events.

If you’re seeking the most profit-
able outlet for your appliances,
advertise to the Mortons and the
largest active circulation in Chi-
cago! Then watch your sales
rise!

CHICAGO AMERICAN

1935

- «- more Buying Power to you

NATIONAL REPRESENTATIVES: Rodney E. Boone Organization

SALES

management

Vol. XXXVI. No. 3

February 1, 1935

CONTENTS
Advertising

Exit Pinaud’s Barber: Products Go Feminine in
REESE SD Herre eee per
Good for Chewing Gum, Good for Baseball: PK
SEE Sonics ss 20 evGeeaewestces
It's Surprising, Mr. Hovey, How This Discussion
og 8 Ae are eee
By Felix L. Lippman, Keller, Heumann-T hompson,
Rochester, New York
Major Advertising Gained 24% in '34 .........
New Regulations Promote Truth in Liquor Adver-
MEE hachids caer cd tad ee aeRO Roe veo S
When the Sales Manager Has the Itch to Use a
are ee eee
By T. Harry Thompson, Copy Supervisor,
N. W. Ayer & Son, Philadelphia, Pennsylvania
General

Chains Gain Over Independents During Depres-
ME coréie cg ace Wihoem vee Fen wa cmein hee
Significant Trends
Markets
Industrial Sections Show Greatest Improvement,
3 2” Ie eee ee
By Jules Backman and A. L. Jackson, Editors of
Economics Statistics, Inc., New York
SM’s Sectional Index of General Business.......
News
Food and Drug Bills, NRA and FTC Lead News
; in Washington
Hiring Salesmen
Man Wanted!

By Nelson S. Bond

Sales Campaigns
Farm Papers and Spot Radio Reach Farmers for
SU Kk ce cestnncscnceeeedcenss ves
Based on an interview by Lester B. Colby
with Bert §. Presba, Vice-President, Mantle
Lamp Company of America, Inc., Chicago.
Goodwin Sets Forth to Conquer 12,000,000 ‘“An-
ET NS ee
By Lawrence M. Hughes
Philco Sales Top Record with Revamped Adver-
ES Sade ciasccekieeewies tnaees
Phillips Introduces 5-Cent Soups in Aggressive
ID ncn nb dein iencessicen
Reporter Finds Hotpoint’s New Show Hot Suff. .
Salesmanship

Some Simple Rules for Putting Punch Into Store
PEE PT Ce ree
By John K. Crippen, Manager,
Direct-Mail Department,
L. B. Allen Company, Chicago
When Politics and the Weather Beat Salesmen Out
of Orders

Ce

139
129

148

158
132
144

156
119

138

122

EDITORIAL STAFF:
Puitip SALIsBuRY, Executive Editor; A. R. HAHN, Managin
tor; E. W. Davipson, News Editor; M. E. SHUMAKER, Desk
ASSOCIATE EDITORS:

B. Prescott, L. R. BOULWARE, FRANK WAGGONER.

Published by Sales Management, Inc.
Puitip Satispury, C. E. re ape Jr.. M. V. REED,
SMALLWoop, Vice-Presidents; T. J. °K

FRANCIS, reasurer,
New York. Telephone Mohawk 4-1760.
Michigan Avenue. Telephone State 1266.

ELLY, Secretary; F.

.00 a year. Canada,

Publication office, 420 Lexington Avenue,
Chicago, 333 North
Santa Barbara, Cali-

RAYMOND Bit, Editor and Publisher;

Edi-
stor.

James R. Daniets, LAWRENCE M.
HucuHes, Lester B. Corsy, D. G. Barrp, MAxwe.tt Droxe, Ray

RAYMOND BILL, President;
R, bs

fornia, 29 East de la Guerra. Atlanta, Georgia, 303 Mortgage Guar-
antee Building. Subscription price,
Member Audit Bureau of Circulations.
Periodical Publishers Institute.

f $6.50.
Associated Business Papers,

[116]

A taxicab, with two of our characters, leaves, for example, Grand
Central Station or the Biltmore Hotel, moves west one block, swing;
suddenly into the chaos of Fifth Avenue. To be sure, no advertise;
can be discerned very clearly in this mad rush of vehicles ang
wheels and people. But there’s a reason even for the Fifth Aye.
nue rush. The passengers note a card in front of them whic
says that the company’s drivers are bonded, thus adding to the
safety of New York.

The potential number of advertisers in this two-hour film, Mr
Beman says, is from 250 to 300. The film is also a merchandising
medium. In addition to attracting a minimum Circulation of
200,000 people, nearly all of whom, it is assumed, intend to
“Know New York,” there will be distributed the book about it
The book, of course, contains the names of all the advertisers jp
the picture. Advertisers also will receive weekly the names and
addresses of all the people who attended the showing in that week.
Distribution will be from coast to coast, mainly in cities of 50,000
to 150,000 population. About 40 of these cities, it is said,
already have signed.

An important institution, as far as little Dorothy is concerned,
will be an automatic restaurant. She will drink vast quantities of
milk, just for the pleasure of inserting the nickels and turning the
crank,

Advertisers and sponsors are expecting to find the camera pauses
financially refreshing.

“Ty-Eze” Man

John L. Hurlburt was in with his cravat sample case the other
day. Business had been a bit better than usual (he had sold four

cravats right on the spot) and he had time to sit down and tell
us a bit about himself.

Probably he was glad to sit down. When one is 60, and is
still recovering from 15 long months in the hospital, trying to
mend broken hips, it is good to rest . . . when one can.

Mr. Hurlburt makes his cravats himself, by hand, in his room
at 237 West 107th Street, New York. Then he goes out and
sells his day’s output. They are good cravats, and he gets a dol-
lar apiece for them. But his volume is seldom more than twelve
a day. Not more than half of the $12 is net profit. And there
are days when the hips won't let him work at all.

The best thing about the cravats (and we speak as a satisfied
customer) is what he calls “Ty-Eze.” He has applied for a
patent on it. The cravats are made in two parts. The knot of
each (it is carefully adjusted to begin with) is never untied. The
spreading ends are sewed to the knot. The part which goes around
the neck is separate. On each end of it is a thin piece of bone.
You slide the ends through the back of the knot and deposit them
in a hidden compartment in the back of the cravat.... No slid-
ing, no shifting, after the cravat is set. It stays put and looks

like a new tie—until, of course, you happen to spill something
on it.

Before the depression started to alter a lot of careers, John L.
Hurlburt was making good money as the head of a removable
blade scissors-and-shears-business. He held a patent on that process.
But as people, of necessity, became less fussy about the condition

of their scissors; he had to close up the business and do other
things.

He got a job as a house-to-house salesman for Electrolux re-
frigerators, and made a living at it . . . until, one day in April,
1932, a hit-and-run motorist left him in the street.

In his more prosperous days, Mr. Hurlburt, like many another
men, had been careful about the appearance of his cravats. The
idea of a ‘““Ty-Eze’” cravat had come to him one hot night when
he had ruined three of them through twisting.

Recuperating in the hospital, he set to work on the idea, and
put it through the laboratory stages there, so to speak. He
emerged from the hospital in July, 1933, without a nickel. The
Government gave him enough compensation money to live on.
Out of this he managed to buy ties and materials. He is making
a living, without Uncle Sam’s help, now.

Sometime—perhaps, before long—he hopes to find a backer.
He could have assistants to help him then. He might even have
machines.

SALES MANAGE MENT

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Significant Trends

As seen by the Editors of Sales Management for the fortnight ending February 1, 1935:

The first few weeks of the
new year witnessed a decline
in business activity to 8%
below the December average.
This is not depressing news,
however, for the normal sea-
sonal decline is 11.3%.

Recovery
Carries On

@ @ @ Most industries are in a well-balanced statis-
tical position at this time and should show a better than
seasonal performance during the next month. The prog-
ress of the automobile and steel trades should be watched
closely for any signs of irregularity.

@ @ @ Both of those industries are making rapid
progress. The adjusted index of automobile production
is now higher than at any period since December, 1930,
and stands at 101.4% of the 1927-1930 average. Nation-
wide steel production is estimated currently at more than
51% of capacity—which is approximately double the pro-
duction rate of January a year ago.

@ @ @ Colonel Ayres of the Cleveland Trust Com-
pany points out that the degree of recovery attained in
1935 will probably depend more directly on the volume
of output of automobiles and on the amount of new resi-
dence construction than on any other factors in the field
of industry. The automobile picture is good, for not only
is production at a high rate, but stocks in the hands of
dealers declined sharply during the last few months of
1934. New residence ‘construction, however, is still fluc-
tuating around the 10% level (100 is the 1923-1925
average). The dollar value spent on repair and mod-
ernization created directly by the Better Housing Program
was estimated as $224,325,299 as of January 12, and on
that date there were 5,078 community better housing cam-
paigns organized.

@ @ @ An interesting index of business, which some
observers consider more significant than any other, is the
sale of machine tools, the theory being that manufacturers
do not buy machine tools unless they feel sure that they
will have sufficient orders to justify the added expense.
So it is interesting to learn that the machine tool and
forging machine industry reports that orders from domestic
firms rose in December to the highest level since 1930.
Apparently a beginning is being made not only in the
replacement of a large amount of worn or obsolete equip-
ment, but the outlook for profits has improved sufficiently
to warrant plant expansion.

@ @ @ The N.LR.B. has announced a new policy re-
garding advertising allowances under the codes. Adver-
tising, it holds, should be paid for directly and not under
the guise of price reductions, discounts, bonuses or rebates.
We predict that the observance of that code will give manu-
facturers who advertise through their retail dealers a better
tun for their money than they have had in the past.

@ @ @ Another Washington group, the Industrial
Advisory Board, has been investigating the results of 16
years of grade labeling in Canada. It finds that only one
housewife out of eight buys on the strength of. the labels

1935

FEBRUARY 1,

on cans or bottles, and that only two out of eight know
that cans are labeled.

@ @ @ The Drug Institute of America has filed a
brief with NRA asking the continuation of the stop-loss
provision of the Retail Drug Trade Code, in which they
demonstrate that the stop-loss provision does not cost the
consumer anything because articles ‘‘written up” to cover
losses on the “bait merchandise” do not have to be written
up so much now and have leveled off, while many manu-
facturers have reduced wholesale list prices under opera-
tion of the amendment, because of the natural efforts to
attract retail support by offering a larger margin to retailers.
The result, according to Drug Institute, has been an im-
provement in the retailers’ gross (helpful to those asked
to take on code wages and hours), and a reduction in price
to the consumer.

@ @ @ A nation-wide survey conducted by Druggists’
Circular shows that the price stabilization plan in the in-
dustry is 92% effective—that only 8% of prices being
charged by retail druggists are below the suggested mini-
mums of the manufacturers.

@ @ @ The appointment of the Boston Store, one
of Chicago’s largest Loop. department stores, as a special
agency for the sale of Nash and Lafayette automobiles
brings the metropolitan store back into the automobile
merchandise field for the first time in more than 15 years.
The store will aid in the promotion of the cars by attach-
ing posters to their trucks and delivery vans and by placing
Nash and Lafayette sales literature in all parcels.

@ @ @ To sum up the present outlook: The straws
in the wind point to continuation of the present upward
trend in general business at least until April.

The year opened auspiciously for the automobile makers.
Plymouth, for example, broke its all-time record for
weekly shipments during the week ending January 12,
when it shipped 11,730 units to dealers in the United
States. Sales during the first two weeks of the year
jumped 171% over last year, and the company has
backlog orders totaling nearly 100,000 cars.

{119}

Debits to individual

> ss 90% of all business

Show Big Gains
9 gained 17% above
section of the country is above last year, with the Cleve-

. accounts (represent-

Bank Debits ing approximately
transactions) for the

week ended January

the total for the corresponding week last year, and for
the week ending January 16 the gain was 23%. Every
land area showing the most extraordinary gains—49%
over last year in the last fortnight.

@ @ @ Other significant factual trends of the fort-
night include: Department store post-holiday sales are
considerably higher than last year and the Federal Reserve
Board’s index for December shows an increase of 3%
more than the estimated seasonal amount; the commodity
markets are suffering from a slight attack of the jitters
as the Supreme Court studies the gold case, but average
prices are 20% higher than a year ago at this time; freight
cat loadings started out the year at about the same level
as last year; electric power production is up 10%.

@ @ @ The Brookmire Economic Service estimates
that business during the next six months will be 13%
higher than last year, and thinks that the following states
will be materially above national average: Maryland, Vir-
ginia, North Carolina, South Carolina, Florida, Alabama,
Mississippi, Louisiana, Tennessee, Kentucky, Oklahoma,
Michigan, Indiana, Illinois, Wisconsin, Minnesota, Iowa,
Arkansas, California, Oregon and Washington.

@ @ @ Final construction figures for the 37 Eastern
states, as compiled by the F. W. Dodge Corporation, show
a gain of 23% over the previous year in contracts awarded.
The year showed gains im each ten general classes of con-
struction except factories and residential buildings, the loss
in the former being 10% and in the latter less than 1%.

@ @ @ According to reports compiled by Restaurant
Management, restaurant and hotel operators increased their
food business from 20% to 40% in 1934. The estimated
percentage of meals eaten outside homes in various key
cities are: Philadelphia, 16%; Chicago, 25%; San Fran-
cisco, 37%; Detroit, 23%; Milwaukee, 18%; Newark,
New Jersey, 23%; New York, 46%; Washington,
28%. The smallest figure reported is Toledo, with 14%.

@ @ @ Down in Arkansas, Harvey Couch, head of
the Arkansas Power & Light Company, is going after
15,000 new customers in farm homes by embarking upon
a program from the book of which even T.V.A. and the
Brain Trust might lift a few leaves. He plans to extend
rural power lines and to sell each home-owning family appli-
ances on a monthly payment plan to spread over five years.
The really interesting part of the plan is that those who de-
sire such service will be offered an opportunity for employ-
ment in building the power lines, thus earning funds with
which to make the first payment on wiring and appliances.
Going still further, he is going to encourage the farm wife
to add from 10 to 12 hens to her flock on the theory that
they will produce enough eggs to pay the monthly electric
bill. The company will assist in marketing not only eggs
but chickens, butter and possibly other produce.

@ @ @ Joseph B. Eastman, transportation coordinator,
questioned 26,000 travelers about railroads and reports
show that present high fares are in large measure responsi-
ble for unprofitable rail operations, since they have not only
put rail travel out of the reach of most people, but in many
instances are higher than the cost of travel by private autos.

[120]

@ @ @ The Eastman report not only recommends
lower basic fares for all travelers, but urges the establish-
ment of “quantity discounts from the standard charges, for
families, parties, traveling salesmen, lodges, schools and
similar groups.”

@ @ @ Detroit shows an extraordinary change over
three years, two years, even a year ago. Employment as
of December 31 was reported at the 1929 level, with total
factory employment of 300,000. Employment experts pre-
dict that the total will equal the 1923 to 1925 average,
considered the normal, by Spring. Automobile production
for the first two weeks in January was the largest since
1929. Even the railroads are perking up. On January 6
the Michigan Central’s Wolverine limited left Detroit for
New York in five sections, so a Collier's observer reports,
That hasn’t happened since 1929. On the same day the
Pennsylvania Red Arrow ran two sections to Washington.
The B. & O. and Wabash trains likewise were jammed,

The spread _be-

tween the income

Living Standards and —
fi expenditures 0
Increasing

the average man
seems to be in-
creasing. The cost
of living is up about 12.5% from the March, 1933, low
point. Produced income has increased about 13% in the
same period, but total income, which includes dividends,
etc., has jumped about 28%.

@ @ @ The current situation seems even better than
indicated above, for the betterment was more pronounced
in 1934 than in 1933. The cost of living rose only
4.5% during the last twelve months, but produced income
gained 9.3% and total income 18%. It is true that some
of the dividend payments were unearned, or represented
payments made from surplus, and that some of the pro-
duced income was the direct result of government spend-
ings on relief projects, but the essential point for today’s
realistic sales executives to bear in mind is that there is
more money to spend, and, more money to spend on
luxury and high-priced products.

@ @ @ The Diamond Match Company will in the
future distribute all of its met earnings to stockholders
and employes. After preferred and common stockholders
have received $1.50 per share per year, any additional
earnings will be distributed to preferred stockholders up
to the maximum annual return of $2 per share, with the
balance divided between holders of the common stock and
to labor steadily employed, but excluding management and
salaried officers.

@ @ @ Despite record-breaking 1934 sales in many
lines of electrical appliances, the magazine Electrical Mer-
chandising proves that the saturation point is far removed.
Fifty-eight per cent of homes are without electric clocks;
52% have no cleaners, 94% no cookers, 82% no heaters,

71% no refrigerators, 54% no washers, 96% no oil burn-
ers.

@ @ @ Leaders in nearly every industry think that
their particular industry could and should lead the parade
back to prosperity. The chairman of the fashion com-
mittee of the National Association of Merchant Tailors
of America, for example, stresses the stimulus of color as
essential to reviving the men’s wear business, and declares
that colors will increase sales 100 to 500% and “bring a
billion dollars a year in extra business. America can be
dressed back to prosperity in color.”

Reprints of Significant Trends are available at five cents each, remittance with order.

SALES MANAGEMENT

(
P
v
0
t
,

Shots

Over &
it as
ta in the sales
pre-
age,
tion
ince
ry 6
for
Orts,
the
ton. — , —
d New Clothes for Lady Esther : Designer Helen Dryden, utilizing extreme
ned, simplicity, gives family identity to these Lady Esther cosmetics. The
powder boxes are pale pink with blue polka dots; the cold cream jars
be- are white glass with pink enameled caps. Only six words are on the labels.
ome ‘ . ,
sary Hardware Train: (Right) Kelley-
f “MEET THE How-Thomson Company, Duluth
0 wholesalers, send a “Train of
nan Hardware Progress” to 55 cities
in- on a 3,800 mile swing around the
cost circle. The twice-a-year arrival
me: hak dekt us of the special is a gala occasion,
ow ON THE AIR!” thanks to the cooperation of local
the merchants. Crowds climb aboard
ids, to inspect the latest wares and
salesmen explain them, hand out
tons of literature. Sales mount
” in the wake of the exhibition on
al wheels.
nly
me
me
© WHITERS TEETH FASTER!
ted O PURIFIES BREATH:
fo- * CHECKS ACiO MOUTH!
id- EVEN THE KIDS WILL ENJOY
y's THE PLEASANT NEW FLAVOR
is
on

Cantor Counter Card: (Above)
Pebeco ties up its radio campaign
with point of purchase cards. The
old flavor was somewhat distasteful
to youngsters so all the advertising
on the improved paste emphasizes
“there’s been some changes made.”

Hearts and Flowers: (Above) Allied Florists, Chicago, try out Cellophane packages,

an idea conceived by Hilmer V. Swenson Company. At left above is a Valentine

“Peek-Pak” that keeps the flowers moist and fresh. On the right is Prince Matchabelli’s

fragrant offering for the day dedicated to lovers: A bright red heart holding three

little crowns of his perfume, One and two bottle packages also come in the romantic
heart boxes. Clever, huh?

Operaon Main Street: (Left) Listerine,
toothpaste and antiseptic, builds a
window display around its broadcasts
of the Metropolitan Opera, thus hop-
ing to interest the average man in
arias—and in Listerine products.
Einson-Freeman executed the display
which places actual packages right in
the spotlight.

Coordinator: (Right) A. J.
Amos will head a new General
Foods sales activity, contacting
large organizations, such as rail-
roads, steamship lines and hotel
chains. He will represent all
the company’s 20 advertised

AINE brands as well as 60 other GF
corm OS* : items, coordinating and supple-
menting the regular district
sales managers. He’s been with

the firm since 1927.

> Photo by Ben Piecoes, Mo 8s
FEBRUARY 1, 1935 f121}

N the ballroom of the Plaza
| Hotel in New York on the morn-
ing of Monday, January 14, were
gathered three groups of people.
They were widely different people, but
they all seemed much concerned with

the meeting. The SALES MANAGE-
MENT representative—the only ‘‘out-
sider” present—found it a strange and
stimulating combination of a political
convention and sales conference.
Toward the back of the room sat
about 200 women—most of them, ob-

viously, “housewives,” mothers and
grandmothers; typical |§ American
women. If the reporter had not just

braved a gale so strong it seemed al-
most to unseat General Sherman from
his bronze horse in the panhandle of
Central Park, he might have thought
himself in Tulsa or Missoula.

Seated with the women were a few
clergymen of various faiths and a few
laymen.

In front of this group were 108
men. Obviously they were business
executives. As the “roll call’’ later
showed, many of them and their com-
panies were well known.

Facing these groups, in a long row
across the room behind a speaker's
desk, were 20 other executives. In
the center of this row, his great height
and bulk—six feet four and one-half

[122]

Goodwin Sets Forth to Conquer
12,000,000 “Anchored Market”’

BY
LAWRENCE
M.
HUGHES

Adolph O. Goodwin, big
in body, has big ideas
too. He hopes to provide
for the churches of
America many millions a
year in income through
operation of the Goodwin
Plan. By means of 265,-
000 church workers, who
will act as “broadcasters”
of news about the prod-
ucts of manufacturer-
members of the plan, he
expects to affect the pur-
chases of some 3,000,000
families,

inches and 270 pounds—making him
even more a focal point, sat the
man who was responsible for these
groups being there.

His name is Adolph O. Goodwin.
This was the climax of a series of
such meetings, each of which has in-
troduced to an invited group of
manufacturers of diversified products
a mew sales promotion instrument
known as the Goodwin Plan.

The plan itself, as a result of
these meetings and presentations, has
won the participation of some 60
manufacturers of more than 300 non-
competitive, generally - distributed
products, in the sales interest of which
265,000 women “good-news broad-
casters” will shortly start ‘verbal en-
dorsement’” campaigns among the
family heads of their communities.

The launching is being effected
formally today by locking up the list
for the first edition of an illustrated
Shopping Guide for distribution by
the “‘broadcasters.’” For a “registra-
tion fee’’ of $2,500 each manufacturer
participating may have one column in
the guide, in which to show and de-
scribe those of his products which have
been chosen. He may have additional
columns for $500 each. More than
one hundred columns have been taken.
Within a few weeks, it is expected,

the book will be placed in nearly
3,000,000 American homes.

For sales increases gained through
operation of the plan itself, it was em-
phasized at the meeting, the manufac.
turers pay a small percentage. But
they pay only in proportion to actual
increases. They pay only after the in-
creases have been made.

The 200 women at this meeting—
a good-sized sales promotion force
themselves—were less than one-tenth
of 1 per cent of the 265,000 “broad-
casters” enrolled in the Goodwin Plan
throughout the United States. Each,
it was shown, is an active member of
a society of one of 17,500 churches—
Catholic, Protestant, Jewish—in 5,800
cities and towns. Each has agreed, for
a period of three years, to call month-
ly on at least ten families in the in-
terests of al] the products listed.

Executives of the Goodwin Cor-
poration, sponsor of the plan, refer to
them in the aggregate as an “‘oral sales
promotion medium.” Instead of re-
ducing a manufacturer’s regular ad-
vertising, it was explained, they are
intended to make the advertising work
more effectively. They will help to
eliminate switching of brands, by de-
veloping an increased and consistent
demand for these products by the
nearly 3,000,000 families of this ‘‘an-
chored market.” The families will
purchase the products from established
retail stores.

Churches to Show Profit

The broadcasters have signed in
order to earn money to contribute to
their churches. Manufacturers _par-
ticipating will pay a total of 314%,
of the retail value of sales made to
these families under the plan—only
sales from which certain specified
“evidence” is saved and presented to
each manufacturer by the Goodwin
Corporation. More than half of this
—2Q% of the total value of these sales
—is to go to the broadcasters, for
the churches. Thus the interests of
the manufacturers and the church so-
ciety workers, it was shown, are iden-
tical, and the returns to both exactly
proportionate to the success of the
broadcasters’ efforts in any given local-
ity.

To coordinate and develop the
work of the broadcasters and to pro-
vide merchandising aid for the manu-
facturers, the Goodwin Corporation

SALES MANAGEMENT

has established a headquarters staff at
Chicago and is represented by 15 ter-
ritorial supervisors, 363 district (local)
managers, and nearly 1,000 repre-
sentatives. One-half of one per cent
will be paid to each district manager
and his representatives for sales made
in their locality. The remaining 1%
will compensate the territorial super-
visors and the Goodwin Corporation,
and will provide for operation of evi-
dence audit bureaus, and for general
contact and promotion expense.

The 108 business men at the meet-
ing represented 73 manufacturing
companies invited to participate in the
plan. A number of these have since
joined. Others have come in as a
result of previous and subsequent
meetings. The 20 men at the
front of the room represented the 45
companies already in the plan. A
committee of these manufacturers had
joined in the cultivation of the ‘‘pros-

ects” and sponsored the meeting.

All of the “Goodwin” manufac-
turers present told the prospective
members what they had “found” in
the plan, and what they and their or-
ganizations intended to do about it.

One of them, an executive of one
of the largest corporations in American
industry, pointed out that “when I
presented the mechanics of the Good-
win Plan to our divisional district
managers, I did so with restrained
optimism. And yet, at the end of
my explanation, they not only request-
ed the plan, but demanded it.”

Boosts Brand Buying

Another said: ‘Conditions since
the advent of the depression have
brought us to a point where the Good-
win Plan, or some instrument like it,
must be resorted to if we are to main-
tain the popularity of brand names
among consumers.”

Toward the close of the meeting,
the 200 women were brought up, a
score at a time, and introduced to the
manufacturers as a “sample” of the
nation-wide sales promotion medium
which the Goodwin Plan has provid-
ed. They let the manufacturers know
of their enthusiasm for the plan—for
its purposes and for the products
which would help them all to realize
those purposes.

Then Mr. Goodwin said: “Raise
your hands, you who want to purchase
your categories under the plan!” A
number of them did. Several stood
up.

It was a stimulating meeting, right
up to the last. And the manufacturers
were feeling pretty sure by then that
the plan would mean a sales revival
for them, too.

FEBRUARY 1, 1935

Here, in his own words, is Mr.
Goodwin's story of the plan’s concep-
tion:

“The year 1929 brought us to the
overflowing point in production, as
against consumption. At that point
there were too many things, too much
alike, at too much the same price.
Promotion and advertising instruments
then available could not lift a prod-
uct above competition. . . . And an
‘extra something’ was needed.

“Word of mouth advertising has
always been a most effective medium.
I decided to try to direct the word of
mouth advertising of a large group of
women throughout the country, among
their friends, on behalf of a group of
worth-while, needed, non-competitive
products.

Dignified Aid to Churches

“There had to be a reason. There
had to be a common denominator,
which would bring the manufacturers
together and cause the women con-
sistently and constructively to promote
these products. My reason for going
to the societies of churches of various
denominations for the members of this
‘personal medium’ was the memory of
my own mother. For 55 years, down
in Raleigh, North Carolina, she has
crocheted and embroidered articles to
sell for her church bazaars, and has
assisted in cooking church suppers and
selling articles from house to house—
all to make money for contributions
to her church purposes. Millions of
women are doing likewise. But these
methods must be undependable. The
churches cannot rely very much on
contributions from these sources. And
they are likely to affect manufacturers
and retail stores unfavorably.

“It was my theory that 250,000 of
such women could be enrolled, and
that they could earn substantial
amounts if paid only a fractional com-
mission from the sales that they would
cause—provided they were supplied
with the names of a diversity of prod-
ucts of normal family use.

“I believed that the clerical heads
of the denominations of which the
societies are a part would prefer such
a method of their workers earning
money for contribution to church and
charity purposes, to those which had
been employed. I felt that such a
medium would protect the present re-
tail dealers and distribution channels,
and would also effectually produce
sales for manufacturers. But more
important, I believed that the basis of
cost to the manufacturers, of a small
commission on each sale so brought
about, would reduce the ‘chance’ for-
merly taken in sales promotional

(Continued on page 152)

Manufacturers

Here are some of the manufacturers
who have listed all or some of their
products with the Goodwin Plan:
Acme Card System Company

(index systems)
Allen-A Company
(Women’s and men’s silk stockings; women's
and children’s swim suits)
Armand Company
(Cosmetics and beauty aids)
Barbasol Company
(Shaving cream and razor blades)
America’s Own Match Company
(Safety and ‘‘Strike-all’’ matches)
Boston Food Products Company
(Prudence corned beef hash, beef soup, lamb
stew, etc.)
Bost Tooth Paste Corporation
(Bost tooth paste and tooth powder)
Joseph Burnett Company
(Extracts, spices and food coloring)
B.V.D. Company, Inc.
(Men's underwear and handkerchiefs)
Champion Spark Plug Company
(Spark plugs)
Crown Overall Manufacturing Company
(Overalls and children’s play suits)
Diamond Match Company
(Toothpicks, clothes pins and waxed paper)
Dictograph Products Company, Inc.
(Acoustic products)
E. I. du Pont de Nemours & Company, Inc.
(Paints, varnishes, enamels)
Eberhard Faber Pencil Company
(Pencils, penholders, erasers and rubber bands)
Elder Manufacturing Company
(‘Tom Sawyer’’ boys’ blouses and neckwear)
Flash Chemical Company
(Mechanics’ hand paste, hand de luxe pow-
der, silver polish)
E. Fougera & Company
(Vapex; Rigaud perfumes)
Frostilla Company
(Frostilla hand lotion)
Walter Janvier, Inc.
(Shu-Milk shoe polish)
Haley M-O Compete, Inc.
(Haley's magnesia-oil)
E. Griffith Hughes, Inc.
(Radox bath salts, Emerald oil, etc.)
McKesson & Robbins, Inc.
(Albolene, Calox antiseptic, McKesson aspirin,
Yodora)
Metal Textile Corporation
(Chore Girl scouring pads)
Middishade Company, Inc.
(Men's clothes)
Enoch Morgan’s Sons Company
(Sapolio, Sapolio powder, hand Sapolio)
Musterole Company
(Musterole)
Northern Paper Mills
(Northern tissue and gauze; bathroom paper)
Olive Tablet Company
(Dr. Edward’s Olive Tablets)
Radbill Oil Company
(Penn-Rad motor oils)
Rieser Company, Inc.
(Venida sanitary napkins, hair nets, facial tis-
sue, etc.)
E. W. Rose Company
(Zemo liquid and ointment)
Rotospeed Company
(Duplicating machines)
Royal Worcester Corset Company
(Bon-Ton corsets and Bon-Ton products)
Runkel Brothers, Inc.
(Chocolate and cocoa)
Scott & Bowne
Scott’s Emulsion, cod liver oil and cod liver
oil tablets
Seiberling Latex Products Company
(Rubber goods specialties)
R. B. Semler, Inc.
(Kreml hair tonic and shampoo)
Shirtcraft Company. Inc.
(Shirtcrafe shirts, Airman shirts and Horner
pajamas)
Stokely Bros. & Compen , Inc.
(Strained vegetables for babies)
Vollrath Company
(Enamelware for the kitchen)
Winget Kickernick Company
(Patented underdress for women and misses)

“Goodwin”

{123}

H. Armstrong Roberts

When Politics and the
Weather Beat Salesmen
Out of Orders

BY
W. M. DAY

WAS sitting in the office of a

buyer for a large corporation the

other day. The telephone rang

and when he put it down he
turned to me and said:

“You don’t mind, do you? A sales-
man outside to see me. He won't be
long.”

“I'd like to hear him,” I replied,
and moved over to a corner as he
came in. Here’s a record of what took
place.

The first five minutes were devoted
to a discussion of health and the gen-
eral business situation.

The next ten were spent in talking
about what each had done during va-
cation and about a party the salesman
had just been on.

The last five were occupied by a
recital of the salesman’s difficulties
under present conditions.

Then—

“How about some of these new
pencils we have?”

“What pencils?’ asked the buyer
and he looked at the clock. “I’m
sorry but we’ve got a date for lunch
and we just have time to make it.
Drop in again sometime.”

And out the salesman went.

The buyer has only so much time
to give you—and you could probably
use more—so don’t waste it. Do
your selling first, then if you have
time, talk about anything you and the
buyer want. Even if you know him
well, tell your story first. You're
getting paid for being a salesman—
not a conversationalist.

Reprints of this page are available at three cents each, remittance with order,

SALES MANAGEMENT

~~ fo Fae

ee

Some Simple Rules for Putting

Punch into Store Demonstrations

For trying out a new product “on the dog” in a hunt for
possible flaws; to gauge the public response; for securing a
large volume of initial orders because of an immediate con-
sumer recognition and demand, the store demonstration has
repeatedly proved its worth. Yet something more than a
pretty girl with a come-hither eye and gift of gab is required

HE word ‘demonstrator’

formerly made a store manager

see red. Fellows out on the side-

walk or in alley-ways, barking at
you from open store fronts . . . these
boys were taking a lot of the legitimate
store’s business, and were no friends
of the harassed store manager, with
a monthly sales-quota staring him in
the face.

Today all is changed. The demon-
strator has, so to speak, “gone white
collar.” Sidewalk technique has van-
ished, and the former trick-demon-
stration racket has gone its way.
The new demonstrator has been ele-
vated to the rank of an aggressive,
intelligent, and sharp-witted indi-
vidual. He knows all the tricks of
psychological suggestion. He is quick-
witted, and ready with answers to both
intelligent and stupid — and
is ready to outwit smilingly any of
those cynical gentlemen whose sole
pastime is hunting demonstrations and
embarrassing demonstrators.

5 Factors in Demonstration

Demonstration has taken its place
in the retail store as a legitimate, re-
spectable procedure which creates sales
that would not have been made in the
ordinary routine of business, which
draws crowds, and therefore stimulates
sales of other items, and which intro-
duces new items to the public, assur-
ing continued sales of that item even
after the close of the demonstration.

In our experience of seven years,
conducting demonstrations throughout
the principal cities of the United
States (through three large chain or-
ganizations), we have learned some
very definite facts about demonstrating.
These are not involved or complicated
facts; yet the entire success of a demon-
stration, or a series of demonstrations
being conducted on a circuit of cities,
depends largely upon the way in which
the factory, store and demonstrator
are able to fulfill the conditions of
these five factors:

FEBRUARY 1,

1935

BY

JOHN K. CRIPPEN

Manager, Direct Mail Department,
L. B. Allen Company, Chicago

Mr. Crippen has worked with the Allen Com-
store
demonstrator, field manager of the demonstra-
Peo-
ple and direct mail have been his two chief
interests, and promotion to his present post
followed. He is the author of “Successful

pany for many years as, successively,

tion staff and sales promotion manager.

Direct-Mail Methods.”

Demonstrator: |The demonstrator
is the most important factor of the ma-
chine. If not a trained, capable, and
persistent type of individual, the best
“spot’’ on earth will produce but few
sales.

The Product: Of this, we may ask
the question: ‘Does it permit of a
‘moving - demonstration, something
that will captivate the imagination, ar-
rest the attention of prospects? Does
it possess dramatic possibilities of pres-
entation—action, and an _ undefinable
‘human interest’ appeal?” If so, a good
demonstrator can readily draw crowds,
who will be interested in watching
his actions, and will thus be compel-
led to-hear the sales story, which is
spicily presented and intermingled
with a naturally interesting presenta-
tion. A “natural’’ product becomes
the setting or background of an in-
teresting personality, and while the
demonstrator is ostensibly drawing at-
tention to its unusual merits, he is
actually putting on a little show, in
which he is the hidden actor.

Store-Cooperation: This is not to
be under-rated. Two of our demon-
strators, who just returned from a tour
of the West, declared that the splendid
hospitality accorded them by store man-
agers during the tour was largely re-

sponsible for a most unusual sales

volume. In what way must the store

cooperate? In having the stock—and

plenty of it—on hand before the
demonstrator’s arrival, so that no time
may be lost; in granting proper
“spots”; in keeping display material

ready and always on hand; in grant-
ing occasional special display coopera-
tion, printing signs, etc., which are
woos sometimes in a hurry; in fur-
nishing cash-registers; in having an
electric outlet handy for light on dark
days. Then there are hundreds of
minor details which may arise, and
which require close cooperation on the
part of the field demonstrator and the
store itself.

The Display: A good demonstrator
can do a great deal toward attracting
a crowd. The usual procedure is quiet-
ly to interest one or two, who will
serve as a nucleus for more. But a
good, forcible display is of great value
to the demonstrator in buildmg up a
large group. Color, a few striking,
bold phrases standing out—these are
of principal interest to the passer-
by.
A display is a wonderful help to the
demonstrator in getting prospects |
to the table. It must be remembered,
however, that too much detail and
elaboration in the display tends to de-
tract from the demonstrators’ presenta-
tions, and may divert the attention of
prospects. The product should be
well placed, at the side of the demon-
strator, so that he will have full view.
Additional display material, such as
signs, illustrations, etc., should be

[125]

placed either at the side or in the back-
ground. Moving demonstrations and
flicker-signs are valuable material, if
advisedly used. They should never
conflict with the continuity of the
whole effect, nor should they be so
placed as to interrupt the vision, or
detract from the demonstrator’s pres-
entation. Flicker signs and moving
displays are best used at corners—to
attract customers approaching from
other directions than toward the front.

Best Locations Analyzed

The Location: 1s a very important
factor. You might put an excellent
demonstrator, with a first-rate demon-
stration product, a perfect demonstra-
tion, and a fine display, behind a pillar
in an out-of-the-way location. Cer-
tainly, you could not expect any sales
volume. The store cooperation is need-
ed in securing the proper location,
which is comparatively easy to find, as
the rules for a demonstration’s loca-
tion are simple. The following four
points list briefly the important fea-
tures of location. These we have gath-
ered largely through observation, com-
parative results, and experience in the
selection and maintenance of store-
demonstrations during the past several
years:

(a) The demonstration should be as
close to an entrance as possible, but must

not be so placed that a large audience will
obstruct traffic into nearby aisles.

(b) It should be so situated that it will
receive traffic flowing toward as many de-
partments as possible, unless strictly a one-
department item. In that case, it should be
placed near the entrance of that depart-
ment to which it pertains. In any other de-
partment, it would look out of place.

(c) The demonstration should be placed
in such a manner that the bulk of traffic
is flowing toward it. Careful observation
and check-up is sometimes necessary to
learn whether or not it is so advantageous-
ly placed. Sometimes the flow of traffic
will be about equal in both directions. The
sauntering customer who is merely “look-
ing” will be avoided by correct placement
with regard to traffic-movement. Incoming
traffic means unspent money.

(d) The stand should be near electric
outlets; the cash-register should preferably
be electrically-operated, and handily placed.

Retail store demonstrations offer a
quick and rapid gauge for the salabili-
ty of a new product. They offer the
further advantage of quickly gaining
recognition for a product, and therefore
securing larger stock-orders. It is one
of the least expensive and most ef-
fectual means of sales-promotion.

Chesman With Donahue & Coe

W. L. Chesman, formerly with the
Geyer-Cornell Company, where he was vice-
president, has joined Donahue & Coe.,
Inc., in a similar capacity. Mr. Ches-
_man, who was at one time vice-president
of Erwin Wasey & Company, has serviced
a wide variety of accounts.

[126]

Talking Points

/ BARBASOL breaks into newspapers
for the first time in ten years, with
half-pages in Chicago and New York
journals that are designed to make
whiskered males mirror-peekers. “Most
men look older than they are,” trum-
pets the headline, “With alkaline
soaps . you see wizened-up old
young men. . . . If you want to keep
looking young and fit throw away
your shaving brush and buy a tube of
Barbasol.”” If the ‘‘beauty-conscious’’
campaign clicks, it will be extended to
other cities. A magazine campaign
along the same theme starts in May.

Charles Dana Gibson pictures the °90’s.

STANDARD BRANDS’ Tender Leaf
tea emerges breathless from the labora-
tory to proclaim, “You actually get the
reviving effect of extra oxygen from
tea.” Lack of oxygen in the blood
slows down the activity of the brain,
but when you drink tea the blood
circulating to your brain and tissues
carries 20% more oxygen. To avoid
looking like the freaks and frumps
of the Gay 90’s, when diners were
left in a state of semi-stupor,”’ just have
a cup or two of Tender Leaf tea.”

Hitts Bros. combats ‘‘coffee-float-
ing,” switching brands, with a tale of
Mr. Brown who “had patiently tol-
erated his wife’s enthusiasm for an-
tique furniture. For ten years Queen
Anne, Chippendale, Sheraton and
Jacobean pieces were shifted in and
out of their home. . . . When Mrs.
Brown started to serve a different
brand of coffee each week, Mr. B. lost
no time in remonstrating. ‘Listen,
Mary, you can float from one style of
furniture to another, provided you stop
coffee-floating. Stick to Hills
Bros. coffee even though it may cost

a little more, you always get more fine
cups from a pound than any other
brand.’”’ With the ad to encourage
them, a lot of husbands will doubtless
issue similar ultimatums.

FAIRBANKS-MORSE COMPANY mar-
kets a “‘Conservador’’ refrigerator that
“gives 3 months’ free refrigeration
each year. When the door of an, or.
dinary refrigerator is opened, the
whole food compartment is exposed,
. . . Warm air rushes in, cold air is
forced out, and the current bill goes
up. Conservador stops this needless
waste.” A subsidiary, Fairbanks.
Morse Home Appliances, Inc., Chi-
cago, handles the distribution through
36 dealers in as many cities.

RizLA COMPANY hopes to popular-
ize rolling your own cigarettes with
its roller ‘‘Jiffy Kit,” filter tips and
Rizla papers. The filter keeps smokes
“free from teeth-staining tars and to-
bacco shreds.” A prize contest in
Cleveland starts the ball to rolling.

BRUNSWICK-BALKE-COLLENDER an-
nounces “free billiard lessons by per-
sonal instruction.” Simply ‘mail cou-
pon for free 56-page lesson book and
name of nearest billiard room offering
free personal instruction.” There are
no strings on the offer, for B-B-C
know that if they can bring folks un-
der the magic spell of the clicking
balls a goodly number will buy tables
(often B-B-C tables) for their homes.

“Old Gold Weeks,” which have
nothing to do with the cigarette, are
being staged in the Middle West. In
Indianapolis the News sponsored the
event; in Decatur, Illinois, the Geb-
hart-Gushard stores put it on. Thomas
J. Dee & Company, Chicago apprais-
ers, lurked in the background, incon-
spicuous, though probably the moving
spirit. The procedure: Copy explains
that old gold, “junk jewelry,” is read-
ily convertible into legal tender.
Owners send their battered watches,
chains, etc., to Dee; an appraisal and
offer at $35 an ounce is made. This
offer is then exchanged for “gold cer-
tificates, usable just like cash,” at any
of the cooperating stores. “It is
estimated that there is more than $10
worth of this junk jewelry for every
person” and the Gold Week turns it
into new and active wealth.

CINCINNATI SOAP COMPANY pushes
Pal, a soap that “blues as it suds as
it washes,” into the sales melee with
a bargain offer: “If 5 of your friends
buy Pal, we will give you 50 cents
worth of groceries free. Complete
details in each package.”

SALES MANAGEMENT

\

PURCHASING POWER

“
”
“

PAYROLLS ABD Pane 1ncous

— A -

PuRcHASING POWER AND COMPONENTS ZicoNosiee reli s.l)

iis. Powe in
hee = "
> 7* Ys
ereres4
na wm”
>. one Go
i sb ‘ era, -
XV
= 7
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= 7e
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” 1930 1931 1932 1933 1934 193%

Industrial Sections Show
Greatest Improvement,

Led by Cleveland

BY JULES BACKMAN AND A. L. JACKSON

Editors of Economics Statistics, Inc.,
New York

E have previously indicated

in these pages that cash

marketings in farm districts

will tend to decline during
the next few months, even though we
expect farm income for the entire year
of 1935 to be slightly in excess of that
during 1934. At the same time, we
have indicated that sales in manufac-
turing districts would increase during
the next few months.

The reason for our expecting sales
to improve in manufacturing centers
can best be shown by comparing the
trends of farm income with the trends
of manufacturing payrolls and railroad
gross income. Note in the accompany-
ing chart that farm income has de-
clined steadily since August, 1934, and
has fallen, according to our index, to
52.7% of the 1923-25 average as com-
pared with 64.6% of that average in
August. On the other hand, payrolls
of manufacturing industries have in-
creased irregularly since September,
tising from 53.7% to 58.0%. Rail-
toad gross income has also increased
steadily since September: Our index
now stands at 52% as compared with
49% in September. It should be noted
that our combined index of purchasing
power declined steadily from August
through to the end of November and
that there was a slight increase during
December, the cause of this increase

FEBRUARY 1, 1935

being the improvement in manufactur-

‘ing payrolls and railroad gross in-

come.

At the present time, based upon the
value of manufactures, the automobile
and the iron and steel industries are
by far the two most important. From
11,400 cars during the week ending
December 1, automobile production has
increased to 67,200 cars per week dur-
ing the week ending January 19. This
improvement has been much greater
than is seasonally normal, but yet there
has been no apparent excessive ac-
cumulation of inventory. _Registra-
tions of automobiles have held up well
and are now increasing at a better than
seasonal rate. The outlook is for
higher production schedules.

What does this mean when trans-
lated in terms of purchasing power?
It should be noted that employment in
Detroit has reached the highest level
since early 1930, and, throughout the
automobile manufacturing districts,
total manufacturing payrolls have in-
creased very sharply. This improve-
ment in automobiles has had a cor-
responding beneficial effect upon the
allied industries, such as steel: and rub-
ber.

The steel industry has increased its
operations steadily since October 20.
Steel production has increased from
22.8% of capacity, as was recorded

during the week ending October 20, to
49.5% of capacity, recorded in the
week ending January 26. This increase
also has been much greater than is sea-
sonally normal and employment and
payrolls have shown a corresponding
advance. Not only has ingot produc-
tion increased, but rolling mill activity
has been stepped up at a similar rate.

Rubber consumption has increased
steadily since September, rising from
30,352 tons during that month to 36,-
662 tons in December. According to
our seasonally adjusted index, activity
in the rubber industry has increased
from 102.3% of the 1926 average in
August to 158.6% in December. Here
again, employment and payrolls have
increased rapidly. None of the other
industries has shown a comparably
rapid rate of improvement.

Four Golden Districts

These three most active industries
are centered principally in the Federal
Reserve districts of New York, Cleve-
land, Chicago and Philadelphia, and
the improvement has been relatively
more within the Cleveland district
than in the others. Based upon these
three industries alone, it can be con-
cluded that sales should show the
greatest improvement in the Cleveland
district, but should also show con-
siderable gains in the other three men-
tioned districts.

Perhaps the next most important in-
dustry to be considered at this time is
textiles. The wool industry has in-
creased from a low of 51.0% (1928-
30 equals 100) in September to 97.7%
in November, and from preliminary re-
ports the December rate of activity
was well above 100%. Activity in the
cotton industry has increased from a
low of 69.6% reached in September
to 96.3% in December, and the silk
industry has increased from 67.9% in
September to 94.9% in December.
Second only to the improvement that
has occurred in automobiles and steel,
stands the record of the textile indus-
tries. The principal centers in which
purchasing power should be increased
as a result of this improvement are the
Federal Reserve districts of Boston,
New York, Richmond and Atlanta.
This improvement has been relatively
greater within the New York district.

The meat packing industry probably
should be ranked fourth in importance.
This industry, which is quite generally
spread throughout the districts of Chi-
cago, St. Louis, Kansas City, Minne-

apolis, New York, Philadelphia and
Cleveland, has been running at a very
high rate of activity for the past few
months. In view of the number of
animals still available for slaughter,
this industry should continue at a high

[127]

rate of activity in the next few months.

The butter and cheese industry,
chiefly centered in the districts of
Minneapolis and Chicago, has been ex-
ceptionally active during the past few
months, but is now slackening, partly
to seasonal conditions and partly as a
result of drought conditions. The
leather and boot and shoe industries
have been declining for the past five
months. However, due to the low in-
ventory position now prevailing and
the improved seasonal conditions im-
mediately ahead, activity should in-
crease sharply during the next three
months. The principal districts af-
fected by these industries are the Re-
serve districts of St. Louis, Boston,
New York and Chicago.

Petroleum is recording a better than
seasonal performance, and is aiding the
Dallas and San Francisco districts to a
slight extent. Lumber continues to op-
erate at a low rate—less than 30% of
capacity. Production of cigars,
cigarettes and other manufactured
tobacco products has declined re-
cently, but not enough to materially
affect conditions in the Richmond and
New York districts.

Cleveland 1st, Then Chicago

From the above analysis, it seems evi-
dent that the Cleveland reserve district
is in by far the most favorable position
of all parts of the nation. Chicago, we
feel, is running a close second, and in
the third place, we group the districts
of New York, Richmond and Boston.

As a note of caution regarding the
agricultural districts, it should be noted
that farm prices at the present time are
ranging from 10-25% above the gen-
eral average of all commodity prices
and the current level of total purchas-
ing power. Under these conditions, it
seems unlikely that farm prices will
move much higher (if at all) in the
immediate future. Furthermore, mar-
ketings of crops declined to 61.5% of
the 1923-25 average in December as
compared with 84.0% in November
and 129.0% in October. Marketings
of animal and animal products de-
clined to 84.0% in December as
against 93.0% in November and
100% in October. The low inventories
of crops now held on farms indicates
that marketings of crops will continue
to decline as is seasonally normal dur-
ing the next four or five months. For
a similar reason—the huge supplies of
animal and animal products already at
principal marketing centers—animal
marketings are not likely to increase
so much as is seasonally normal during
the next three months. On balance, it
seems that there should be some con-
traction of sales in farm districts dur-
ing the immediate future.

[128]

Food Industries, in Conventions at

Chicago, Fight ABC Labeling

More than 10,000 members of vari-
ous food industries organizations met
in Chicago on January 15 for their
annual conventions. Among these
were the National Food Brokers As-
sociation, National Canners Associa-
tion, Canning Machinery & Supplies
Association, National Fruit & Vege-
table Shippers Association, National
Association of Wholesale Grocers, Na-
tional Preservers Association and the
National Pickle Packers. Sessions
covered generally a period of three
days.

Keenest opposition was developed
during the meetings to the “A-B-C”’
system of labeling as it is being fos-
tered and promoted by the Bureau of
Home Economics of the Department
of Agriculture. The story of this op-
position was told in the January 1 1s-
sue of SM.

Proof was evidenced at the meetings
that the proposed system is meeting
with extraordinary bitter feeling.
Leaders in various groups expressed
themselves by condemning the method
as “inadequate, unsatisfactory and mis-
leading.”” They desired, they said,
labels which would “tell the full story
of the can’s contents.”

“Let the buyer know,” they said, de-
claring that the descriptive label was
the only method of “encouraging the
packer to produce real quality.”

The extreme interest in the fight
was considered one of the causes of
bringing out the biggest attendance in
the history of the foods industries.

New Campaigns and Products

Canners reported that, owing to the
short pack of tomatoes, prices for this
favorite item of diet are going up.
With hardly any hold-over they had
hoped to pack 15,000,000 cases.
Owing to drought and generally unfa-
vorable conditions a pack of only 12,-
900,000 cases resulted.

Calavo consumption, it was report-
ed, has jumped more than 500 per
cent in the last year. In some sections
more than 2,000 per cent increase in
consumption was reported. The sud-
den popularity of this comparatively
new fruit is credited very largely to
the consumer advertising campaign
developed by the Calavo Growers of
California.

This advertising has been carried on
largely through tie-ups with retailer
advertising in newspapers and by the
use of articles in the home economics

pages which give recipes for serving
this delectable fruit.

Sixty-four calavo grocers in south.
ern California have joined in the move.
ment since October 1. A total of ap.
proximately 1,500,000 pounds of
calavos have been marketed so far this
season. This is pointed to as one of
the most successful introductory cam.
paigns in the history of food advertis.
ing.

Libby, McNeill & Libby brought to
the convention the story of its success.
ful test campaigns in introducing its
new ‘Homogenized” baby foods. The
method of manufacture is revolution.
ary. Mixtures of various types of
vegetables are cooked and _ blown
against a metallic plate under extreme
pressure through jets.

The claim is that this breaks down
the cell structure and gives a very
smooth product entirely free from
fibre. Usually two or three varieties
of vegetables are blended, without
sugar or salt, and it is contended, the
babies of the nation are given a su-
perior health-giving food.

The cost compares favorably with
competitive baby foods of the strained
type. Libby plans to promote the new
food through intensive advertising
campaigns aimed to get the attention
of mothers of infants.

Nearly Half of All Radios
At Least Five Years Old

A study recently completed in a 2%
cross-section of all homes in Trenton,
New Jersey, shows that 41.5% of all
radios are at least 5 years old, and that
the 5-year, 4-year, and 3-year old sets
represent the greatest volume. Philco,
Majestic, R. C. A., Atwater-Kent, Sil-
vertone, Bosch and Victor lead in the
order named.

The age of sets, in percentage, is as
follows:

%o
Less than 1 year ........ 2.5
SEE 3 Gawd vddemewews 4.7
ML oxedinvaxedeen 12.1
WE hiistntagee ne 16.8
ere 18.3
SE «oS vidn edaxtewes 19.7
| eer ee 8.7
ee 6.4
ere 3.6
Nine years or more ...... 3.1
oe eee 4.1

SALES MANAGEMENT

NT

Good for Gum,
Good for Baseball:
PK Advertises Cubs

K. WRIGLEY, boss of the

Chicago Cubs, who often does

A unexpected things, has begun

to advertise baseball. Up to
now baseball has never been adver-
tised to any extent in the paid columns
of a newspaper. And nobody ever
thought of winter advertising for base-
ball. | Occasionally baseball teams
have carried a card in ‘‘sports events.”
But never display advertising.

In setting this precedent, P. K.
Wrigley has surprised not only the
public but the newspapers of Chicago
as well. Nobody seemed just able to
figure it out. Charles Drake, assistant
to the president of the Cubs, told SM:

“Mr. Wrigley, after watching the
Cubs and the Cubs’ business for a
time, told us in a regular board meet-
ing that, in his belief, in merchandis-
ing baseball we ought to follow the
same principles that we have followed
in merchandising chewing gum. He
looked out of a window, down on
Michigan Boulevard, and said, ‘See
those people going by. They are all
consumers of chewing gum. They are
all baseball customers if we can con-
vince them they ought to see the Cubs
play. We are going to sell them on
baseball.’

“Look at our baseball advertise-
ments, now running during the win-
ter, with snow on the ground. Notice
what these ads say:

‘Look ahead to sunshine . . .
recreation . . . happy hours with the
Cubs at Wrigley field next summer.

‘A healthful hobby and a world of
fun. . . . Watch the Cubs play ball
next summer at Wrigley Field.

‘Decide now on enjoyment and
recreation with the Cubs next summer
. . . at Wrigley field.’

“There’s nothing there about the men
on the team, or the players. It is selling
the game, and the Cubs, and health,
fun, the benefits of sunshine and re-
laxation. Sports writers have stressed
winning so much in their columns that
the public doesn’t go to a ball park for
the fun of the game. They go to see a
winner.

“Drop out as a pennant contender
and the public doesn’t come and the
team begins to lose money. The Cubs

1935

FEBRUARY 1,

Philip Wrigley, who
thinks as clearly about
merchandising and ad--
vertising as any one we
know, decided he’s go-
ing to fill the empty
seats at Cubs Park this
year and get his team
out of the red. So he’s
beginning in the Win-
ter to create crowds
for the Summer months.

lost $182,000 last year. If we had won
the pennant and got in the world’s
series we'd have made money.

“Our idea in advertising the game,
and the fun, and the healthfulness of
it, the sunshine and the relaxation, is
to get the public to go to see ball
games, win or lose.

“Some of our friends have told us
that we are crazy advertising baseball
in the winter time with the playing
season months away. Some of them,
in the next breath, discussing the ad-
vertising, have said, ‘I’m going to see
more Cub games next year.’

“Anyway, this winter advertising
has set ‘em to talking and we think
we will get a profit out of it. Perhaps
we will open up baseball advertising
throughout the country. Others teams
will advertise, no doubt, if we prove
to them that it pays.

“It is Mr. Wrigley’s belief that the
harsh criticisms of many sports writers
have hurt baseball. He thinks, perhaps,
that he could buy space liberally in
the newspapers and sell baseball to the
public in a bigger, better way than
it is now being done by the sports
writers. Perhaps, if this experiment
proves profitable, the Cubs will use
display advertising liberally all sum-
mer.

The advertising done so far consists
of two-column 140-line display ads.
It is being run in five Chicago news-
papers. Two of them are morning
papers and three evening papers. The
ads run approximately every other
day. In reality it is a test campaign

LOOK AHEAD

TO SUNSHINE: RECREATION
HAPPY HOURS

WITH tHe CUBS

AT WRIGLEY FIELD
NEXT SUMMER

. to see if the public will react
in sufficient numbers to make it
profitable.

P. K. Wrigley is putting various
new ideas into the management of his
park. Young Bill Veeck, son of the
late president of the Cubs, has been
made a sort of master of ceremonies.
His job will be to scout the park daily
to see that the public is properly han-
dled. All customer troubles will go
to him. He will be the fix-upper.

Mr. Wrigley is considering the ad-
visability of starting Saturday and
Sunday games at 1:30 p. m., instead
of 3 o'clock. He thinks the public
might attend in larger numbers if it
could get away earlier. He is looking
into another nuisance which has
brought complaints—the lack of con-
sideration on the part of the peanut-
ice cream-pop-and-hot-dog cowboys for
the public.

This summer he will test out a new
type of upholstered seat which, if
found satisfactory, may be adopted
throughout the park.

In other words, baseball at Cubs
park in Chicago is to be merchandised
much after the manner of chewing
gum. The Wrigley advertising motto
has always been:

“Tell ‘em quick and tell ’em often.”

William Wrigley, Jr., who started
P. K. out in gum and baseball, clung
to that idea. P. K. thinks his father’s
ideas in merchandising were very
sound. He thinks enough of them so
that he’s ready to carry them even fur-
ther than his father did.

[129]

Roberts
Photo

BY NELSON S. BOND

f130}

H. Armstrong

“MAN WANTED: We can use a young
man, ambitious, courteous, honest, and re-
fined, in our organization. The days of big
money are not gone. Mr. A made $125
last week. Mr. X has earned over $7,000
this year so far. If you are the man we
want, apply Room 12, Suchandsuch Build-
ing, tomorrow before 9 A.M.”

HIS is typical of a certain type

of advertisement that may Pe

found in the classified col-

umns of any metropolitan
newspaper today.

Reeking with genial affluence, mo-
mentarily it fills the depression-ridden
hearts of thousands of ad-scanning
young men with hope—until those
young men have learned, through bit-
ter experience, that the tale is all
“bunkum,” and that the district sales
manager who inserted the ad has lit-
tle of the “courtesy, honesty, and re-
finement’’ that he demands of his ap-
plicants.

Take John Simmons. John is a sales-
man in Philadelphia—dear old “City
of Brotherly Love.” He is neither an
exceptional salesman nor is he a bad
one. He is just a good, hard-working,
plugging, run-of-the-mill salesman
thrown out of a job by the depression.
His contacts, of a specialty nature,
were ruined by the failure of his
former employer, and he had to go
gunning for whatever selling job he
could get.

The first ad he answered was one
such as I have quoted above. He got
to the office before 9 A.M.—as the ad
suggested. He and a crowd of other
applicants were informed by a weary
secretary that “Mr. Z would be in
shortly.’” They waited. At 10 A.M.
Mr. Z. had not yet put in an appear-
ance. At 11 A.M. there were fully
three score applicants . . . and Mr. Z
came in finally.

Mr. Z wasted no time in prelimi-
naries. He held no private interviews
to establish the relative worth of his
applicants. He lined them all up and
gave them a “pep talk.” In the course
of the talk it developed that the men
were to canvass for a patented elec-
trical appliance. Their sales talk had

Few good companies engage in the questionable tactics dis-
cussed in this article, but the country is full of smaller fly-

been planned for them in detail a lon
time ago by a clerk sitting hunched
up over a typewriter in an office. These
sales talks, it seemed, were printed in
a manual which would cost the appli-
cants only the negligible sum of $1.

My friend left. John had no money
to toss into the hands of a greedy sales
manager whose interest was more cen-
tered on getting a few suckers at $1
apiece than on obtaining a few first.
class salesmen for his article. But, for
that matter, the article might not have
been so good, either.

John went to see another “big-profit”
advertiser. This place “listened
good.” The commissions seemed fair,
and while there was no guarantee John
felt satisfied that he could sell the
commodity offered by this concern and
make a living wage. He accepted the
position offered and went out to get
his lunch.

Unfortunately—or, perhaps, for-
tunately—John got back from lunch a
little early. When he came into the
outer office of his new employer, the
sales manager was talking to a con-
fidant in the adjoining room. Their
voices penetrated the thin walls with
amazing ease. And John’s hopes for a
good job went glimmering when he
heard the manager say, laughingly:

“Oh, they won't stick very long!
Just stall ’em for a little while and
we'll pick “P all their commissions!”

John finally did land a job. Upon
being accepted, he discovered that,
owning no car, he was classed as a
“junior salesman,” and, as such, as-
signed to work with a “senior sales-
man” (a salesman who happened to
own a car). Both men reported to a
supervising salesman, who in turn re-
ported to the district sales manager.

John’s first shock was the discovery
that he might not make a sale. No
matter how good a salesman he was,
and no matter how convincing an
argument he might present, when the
time came for the dotted line to be
graced with the customer’s signature,
John had to give way to the supervis-
ing salesman for the closing. That
worthy, with access to credit ratings,

by-night concerns that have built up a sort of racket around
the business of hiring salesmen. The result is that much news-

paper classified advertising for salesmen is now failing to pull
These experiences of just one salesman
indicate clearly that sales managers who have a sound and
legitimate proposition to offer new men must make a
greater effort to sell the integrity of the company and the
squareness of its policies in dealing with representatives.

likely candidates.

SALES MANAGEMENT

a a a

[i on al on Th > 2 a ee eo ee |

~S wine 7 9 SPO OO

could either refuse or allow the sale
to go through—and in the latter case,
John (theoretically) received his due
commission for the contact established.

John’s second shock came in discover-
ing that every one of his prospects was
labeled “‘N.G.” by the supervising
salesman. None of them, it appeared,
had good credit rating. John worked
three weeks at this job vainly trying to
find a customer whose credit was good
enough to allow John a little commis-
sion on a Sale. He found none.
Finally he turned in his resignation in
despair. Afterward, feeling that the
whole affair could not have been on
the “up and up,” he conducted a little

rivate investigation, revisiting some
of the former prospects who had been
marked “N.G.” on his reports. Angrily
he learned that three-quarters of them
were now owners of the article he had
shown them. The sales had been made
tight over his head!

John found another job. It, too, had
the standard divisions of junior,
senior, and supervising salesmen. This
time a definite scale of commissions
existed. Upon John’s completion of a
sale he received, as junior salesman,
$8. The senior salesman, for un-
solvable reasons, received $11 for each
of John’s sales. And the supervising
salesman got $5 on every sale made!

Who Shall Clean House?

Despite the completely incompre-
hensible commission schedule, John
made a fair living here for a while.
He received checks with fair regularity,
and had hopes of really building up a
fair income—until suddenly his
“senior salesman” resigned. At that
time John had commissions owing
him to a sizable amount. Upon going
to the supervising salesman for his
overdue . money, he was informed,
blandly, that the company owed him
nothing—that he had been hired by
the senior salesman through the com-
pany. The company offered his signed
contract in proof of this. A clause in
the contract, worded in the usual un-
intelligible legal jargon, definitely
stated that John was in the employ of
his senior salesman, and that the com-
pany assumed no responsibility for
money owed him by that party. In
other words, John had never worked
for that company at all—and the as-
surance of integrity that the company’s
name offered was a farce.

So there the matter stands. John is
a good salesman, but until he can
make a contact with some reputable
concern he is “up a tree.” The adver-
tisements he reads are universally mis-
leading—and behind all their fine,

- high-sounding verbiage there is a

snigger of contempt for those un-

FEBRUARY 1, 1935

fortunate ‘‘suckers” who, driven to
desperation by lack of funds, work
without pay for unscrupulous man-
agers.

What’s to be done about it? John
can do nothing. He is powerless
against the array of technicalities,
changing “company policies,’ and “or-
ganization rules’ thrown in his face.
He braves crookedness, favoritism, and
fraud in his efforts to be placed. It
is up to the bigger men—the producers
whose goods are being purveyed in

such fashion by their outlying repre-
sentatives—to uncover and investigate
the machinations of their representa-
tives in scattered cities. Perhaps these
“men higher up” will discover the rot-
tenness in the branches of their own
organizations. Perhaps not. But until
they do, a good salesman is lost to
some company, and John will have to
turn to some section of the classified
ads other than that labeled “Sales-
men” as he looks under the page
headed: “Men Wanted’’!

Food and Drug Bills, NRA and
FTC Lead News in Washington

Washington, January 25.

HE Senate Committee on Com-

merce and the House Commit-

tee on Interstate and Foreign

Commerce have several food
and drug bills before them. But one
of these is worthy of particular note
because it appears to be the one which
will gain eventual Administration
support. This is the revamped Cope-
land proposal now going under the
number S. 5.

Mr. Copeland, New York’s en-
thusiastic Senator, as inseparable from
food and drug legislation as he is
from his boutonniere, last year had a
measure known as S. 2800 which was
likewise a proposal for a new food
and drug act, and which claimed most
of the attention of Administration and
legislators as soon as it was discovered
that the so-called Tugwell measure
was laboring a losing fight under the
onus of the Under Secretary of Agri-
culture’s name.

Senator Copeland is hopeful that his
revamped measure will gain the hea
approval and expressed backing of the
Administration. He has been a caller
at the White House with that end in
view. And he has exited smiling.

All of which seems to call for a
comparison of some of the principal
differences between the old and new
measures.

1. The old: Gave the Secretary of
Agriculture conclusive power as re-
gards questions of fact.

New: Leaves it to the courts as
contests arise.

2. Old: Court review existed under
common law only.

New: Has a provision providing
specifically for such review.

3. Old: The Secretary had the au-
thority to promulgate rules and regu-
lations.

New: Establishes one committee for
that purpose on public health and an-
other on food standards.

4. Old: Provided for a declaration
on the package of the ingredients.

New: Provides the alternative of
filing names and quantities of ingredi-
ents with the Department.

5. Old: A long list of diseases was
named in which advertising of self-
medication was considered taboo be-
cause of the danger involved.

New: Lists only cancer, tuber-
culosis, venereal diseases and heart and
vascular diseases.

6. Old: Restricted the sale of fresh
fruits and vegetables in packages.

New: Exempts natural products
sold in open containers.

7. Old: Provided for “voluntary
inspection” of factories (aiming, of
course, at sea foods).

New: Does not apply this feature
other than a recent amendment on sea
foods.

8. Old: Authorized the Adminis-
tration to make mass multiple seizures.

New: Mass multiple seizures un-
necessary because of the addition of
injunction proceedings securing ju-
dicial determination.

Senator McCarren, of Nevada (S.
580) and Mr. Mead, Representative
from New York (H. R. 3972) have
also introduced food and drug legis-
lation, Theirs, if the Administration
decides against Senator Copeland’s,
will then be worthy of consideration.
But at present the Copeland measure
appears to be the fair-haired boy. And,
while it is early in the session, too
early to conjecture even what might
happen to so controversial a measure
as the food and drug legislation, some
action on the Copeland bill seems des-
tined at this session.

It has been hinted, furthermore,
that, should the NRA fall on evil days
at the hands of the Congress, the label-
ing proposals for the canners fostered
and nurtured and desired by the Ad-
ministration might be tacked on to a

(Continued on page 160)

[131]

New Regulations Promote

Truth in Liquor Advertising

HE advertising regulations an-

nounced January 17 by Joseph

H. Choate, Jr., Director of the

Federal Alcohol Control Ad-
ministration, are believed to embody
higher governmental standards for
truthful and informative advertising
than are in effect for any other class
of merchandise, and it is quite possi-
ble that they will serve as a standard
for truth-in-advertising movements in
other fields.

The regulations cover false advertis-
ing of distilled spirits and wine and
also beer, ale, porter, stout and other
products of the brewing industry. They
were prepared after extensive public
hearings and conferences with the code
authorities of the alcoholic beverage
industries, and with the organizations
representing the national periodical,
newspapers, trade journals and other
advertising media.

Advertising regulations for the
liquor industries have been under
active consideration for approximately
a year, and the publishing and advertis-
ing interests have been represented in
a consulting capacity by the Legisla-
tive Committee of the Alcoholic Bev-
erage Advertising Council, Inc. This
committee is composed of Raymond
Bill, chairman (SALES MANAGE-
MENT); Hartley W. Barclay (Con-
over-Mast) ; Ray Wilkin (New York
Daily News); Clair Maxwell (Life
Magazine), and Edward H. Ahrens
(Hotel Management).

Rules Cover All Media

Both the distilled spirits and wine
and the beer false advertising regula-
tions apply to advertisements through
the medium of radio broadcast;
periodicals and newspapers; signs, pos-
ters and display materials; outdoor
advertising; advertising specialties and
other written, printed and graphic
matter, including trade booklets,
menus and wine cards. However,
menus, wine cards, signs, posters, dis-
play materials, advertising specialties,
and outdoor advertising are exempt
from some of the requirements.

In addition to the general prohibi-
tion against untrue statements, the
regulations specify certain types of ad-
vertising that are prohibited. Among
these are the failure to state the ad-
vertiser’s name and address, although
in lieu thereof the FACA basic permit
number may be stated for purposes of
identification. If the advertisement
relates to any brand or lot of industry

[132]

products, it is required to state the
class thereof, such as ‘‘whiskey,”
“rum,” “brandy,” “gin,” ‘“‘cordial,”
“liqueur,” “beer,” “ale,” “porter,”
“stout,” etc.; if a whiskey, it must
also state conspicuously the particular
type of whiskey, such as “straight whis-
key,” “blended whiskey,” ‘‘a blend of
straight whiskey,” “spirit whiskey,”
and the like. The statements of class
and type must be correct. The FACA
has previously issued regulations set-
ting forth standards of identity defin-
ing the classes and types of the com-
mon distilled spirits. Similar defini-
tions for wine will follow.

No advertisement may contain any
statement that is inconsistent with a
statement made on the label of the
product, nor may it contain any state-
ment disparaging a competitor’s prod-
uct, or any statement as to curative or
therapeutic effects that is untrue in
any particular or tends to create a mis-
leading impression. An advertise-
ment may not misrepresent the place
of actual origin, or misrepresent the
actual producer of the aseled.

Retailers’ Ads Exempt

An advertisement may not contain
the words “guaranteed,” “warranted,”
“certified,” or similar words, except in
connection with a bona fide guarantee
creating an intelligible and en-

forceable guarantee to the pur-
chaser of the product. It may not
contain such words as “bond,”

“bonded,” “bottled in bond,” “aged
in bond,” or ‘bottled under customs
supervision,” except that in reference
to distilled spirits it may be stated
that they are bottled in bond under
United States or foreign law if that
is the fact. Distilled spirits advertise-
ments may not contain the word
“pure” except as a part of the bona
fide name of the industry member,
and distilled spirits and wine adver-
tisements may not contain such ex-
pressions as “double distilled” and
“triple distilled.”

Outdoor advertising already in
place is exempt from the requirements
of the regulations. The jurisdiction
of the FACA does not extend to re-
tailers of alcoholic beverages since
there is no retail alcoholic beverage
code in force. In consequence, the
advertising regulations do not ex-
tend to retail advertisements unless
the advertisements are supplied by a
member of one of the lala sub-
ject to the jurisdiction of the FACA.

What Food and Drug Bills
Say About False Advertising

The first three bills to be intro.
duced before Congress which have tp
do with regulation of advertisin
claims for food and drugs have mark.
edly different clauses regarding falg
advertising claims, as shown below,
An analysis of other features of the
three bills, together with our Wash.
ington correspondent’s convictions
about the possibilities of passage for
each, will be found on page 131.

Copeland Bill S.5, introduced by

Senator Copeland, N. Y., and support.
ed by the Advertising Federation of
America:

SECTION 601. (a) An advertisement of a food,

drug, or cosmetic shall be deemed to be false
if it is false or misleading in any particula
relevant to the purposes of this Act regarding
such food, drug, or cosmetic. Any representa.
tion concerning any effect of a drug shall be
deemed to be false under this paragraph if in
every particular such representation is not sus.
tained by demonstrable scientific facts or sub.
stantial medical opinion.
(b) Ic shall be unlawful to advertise for sale
in interstate commerce a drug represented to have
any therapeutic effect in the treatment of cancer,
tuberculosis, venereal diseases, heart and vascula
diseases, as well as any other disease which may
be added to this list & regulations as provided
by sections 701 and 703; except that no adver.
tisement not in violation of paragraph (a) of
this section shall be deemed to be false under this
paragraph if it is disseminated only to members
of the medical and pharmaceutical professions or
appears only in the scientific periodicals of these
professions or if it is disseminated only for the
purpose of public health education by persons not
commercially interested, directly or indirectly, in
the sale of such drugs.

McCarran Bill S. 580, introduced by
Senator McCarran, Nev., and written
by C. W. Dunn, counsel for the Ameri-
can Pharmaceutical Manufacturers As-
sociation. (The food clauses are
identical.)

Sec. 17. An advertisement of a drug shall be
deemed to be false (a) if it is false in any par-
ticular; or (b) if, while not false, it is mislead-
ing in any particular. Any representation in the
advertisement of a drug regarding its drug value
or effect shall be deemed to be false under this
paragraph if ic is not supported by reliable evi-
dence sufficient to jusify it and consistent with the
purposes of this Act. In construing and enforc-
ing this section a reasonable allowance shall be
made for harmless trade puffing not’ offensive w
the purposes of this Act.

Mead Bill H. 3972, introduced by
Rep. Mead, N. Y., and backed by the
Proprietary Association and_ others.

Sec 5. False advertisements of food, drugs and
cosmetics within the meaning, and for the pur-
poses, of this Act are hereby declared unlawful.

(a) The Federal Trade Commission is hereby
empowered and directed to prevent such adver-
tisements in the same manner as that whereby
it is empowered and directed to prevent unfair
methods of competition in commerce by an Act
of Congress approved September 26, 1914, en-
titled ‘An Act to create a Federal Trade Com-
mission, to define its powers and duties, and for
other purposes’’ ;

(b) The Secretary shall report to the Federal
Trade Commission all violations of this section,
and shall furnish the said Commission, upon its
request, scientific information as to the prop-
erties, qualities and effects of any food, drug or
cosmetic ;

(c) Upon a showing satisfactory to the Court
that any advertisement so reported to the Federal
Trade Commniesion is false or deceptive in manner
or degree to render said advertisement, or the
article of food, drug or cosmetic in the sale of
which said advertisement is disseminated, im-
minently dangerous to public health, the District
Courts of the United States and the Supreme
Court of the District of Columbia are hereby vest-
ed with jurisdiction to restrain the dissemination
of said advertisement pending the final determina-
tion of the proceeding in the Federal Trade Com-
mission.

SALES MANAGEMENT

vert

\
‘
i
’
1

M. S. Hutchins

(above), president

of the Hutchins Ad-

yertising Company,
Inc.

F. A. Hutchins
(above) and F. I.
Hutchins (left),

vice - president and
secretary - treas-
urer, respectively,
of the firm their
brother heads.

N these days when most businesses
are trying desperately to make a
favorable comparison with so-call-
ed normal years such as 1923 to

1925 or 1926, it is news when a com-
any smashes its best previous record.

Sales of Philco Radio & Television
Corporation in 1934 were approxi-
mately 20% greater than its best pre-
vious year. And Philco has been the
leader in the radio industry for five
consecutive years. They have a great-
ly improved product—but so too have
most manufacturers of radios and other
products. | Philco had available the
same type of sales tools last year as
in 1929, but the way in which these
tools were used had a decided bearing
on the increase in sales.

It is the profound belief of Philco
executives that one of the changes
which is most responsible for their
sales increases has been the advertis-
ing partnership which has been de-
veloped between the factory, the dis-
tributor and the dealer. There is a
commitment on the part of each to
spend money for advertising in direct
ratio to sales, and this commitment is
part and parcel of the sales contract.

The Philco distributor and dealer
Organization spent in 1934—and will
spend in 1935—a sum approximately
2Y, times as large for advertising as
the sum which constitutes the factory
appropriation for national advertising.
The local advertising is under the con-
trol of each distributor but coordinated
by the factory and the Hutchins Ad-
vertising Company, Inc., of Rochester,
New York. A special promotion or
advertising idea may be developed in

1935

FEBRUARY 1,

Philco Sales Top Record With
Revamped Advertising Policy

a certain distributor's territory. If it
is successful it can then be worked
throughout the division, or throughout
the country, with the advertising
agency acting as a clearing house.

Philco’s 1934 advertising program
involved not only extensive use of such
national media as general magazines,
newspapers and radio, but also an
elaborate, carefully interlocked plan for
promoting the consumer advertising
and for tying up all advertising at the
point of sale Philco doesn’t find it
necessary to give its dealer helps away.
Practically all of the promotional ma-
terial for use by the dealer is sold to
him.

Key to the success of Philco’s current
advertising campaign is the careful co-
ordination of promotional activities of
manufacturer, distributors and dealers.
Above is a section of a broadside to
dealers, describing various types of local
promotion which can best supplement
national advertising

The 1934 advertising program may
be divided into these sections:

Manufacturer’s Expenditure: General
magazine advertising, including 26 full
pages in Saturday Evening Post and 26 full
pages in Collier's; also 26 half pages in
Saturday Evening Post; 12 full pages in
Good Housekeeping, Cosmopolitan, and
American Magazine each; 26 advertisements
in Liberty; 12 in True Story.

Broadcasting: Boake Carter program five
nights every week on 22 specially selected
key Columbia stations. Special program
every Sunday, EAQ, Madrid, Spain.

Newspaper Advertising—Special Christ-
mas advertisements in leading rotogravure
newspaper sections and in black-and-white
sections of other leading papers.

Manufacturer Distributor Expenditure:
Twenty-nine cooperative newspaper adver-
tisements in 189 leading dailies, and 12 co-
operative advertisements in state and sec-
tional farm papers.

Manufacturer - Distributor - Dealer Ex-
penditures: Special newspaper advertis-
ing for “key account dealers,” guaranteeing
a certain yearly volume.

Window display service providing a
series of window displays for all dealers.

Distributor - Dealer Expenditure:
Newspaper advertising by individual deal-
ers. Broadsides of advertisements sent to
all dealers every month; also special broad-
sides with ads for special events and pro-
motions. The variety of ads and ideas is
usually sufficient to fit the needs of any
dealer in any locality. However, on request,
advertisements are specially prepared to
meet any particular situation.

Other cooperative distributor-dealer ac-
tivities include spot broadcasting, telephone
directory listings, posters, etc.

Dealer Expenditure: Philco dealers are
offered a great variety of special promo-
tion material, which they order from their
distributor, who in turn buys them from
the agency. (A very few of these promo-
tions are purchased by the distributor from
the factory.)

Special Agency Services: Dealer Broad-
sides—mailed monthly by manufacturer to
regular Philco dealers. Mailed monthly
by distributors to prospective Philco deal-
ers. Mailed by Hutchins to newspaper
advertising managers. Monthly _ broad-
sides contain dealer newspaper advertise-
ments; give strong selling on magazine,
broadcast and newspaper advertising being
done by manufacturer, newspaper and farm
publication advertising being done by
manufacturer and distributors; and show
the available promotion material for
dealer use. Also special broadsides from
time to time showing dealer newspaper
ads for special events and promotions.

Dealer Bulletins—Suggested _ bulletins
are sent to distributors each week, which
distributors mail on special dealer bulletin
stationery to their dealers.

Newspaper Publicity—News _ stories
weekly to distributors for release to all
papers. Short wave time table and copy-
righted “Arm Chair Traveler” story each
week to 150 newspapers (by request).

Layout Sheets—Full-page layout sheets
sent to newspapers along with “backbone”
advertisements, showing arrangement of
publicity and dealer tie-ups.

Special Newspaper Cooperation—News-
papers cooperate by giving their own win-
dows for Philco displays, by carrying Phil-
co business on their own trucks, by mailing
letters to all dealers giving release dates
of “backbone” ads, etc.

Sales

men.

Contests—For distributors’ sales-

Special broadsides, etc.

Newspaper Promotions—Newspapers run
full-page advertisements telling how news-
paper advertising promotes Philco sales.
Also special sections. Also specials for
dealer meetings.

[133}

The decentralized Philco advertising
program is an outgrowth of an idea
of the three (Frank A., Mosher Story
and F. Irving) brothers Hutch-
ins, of Rochester, who are the sole
owners of the Hutchins Advertising
Company, Inc., of that city. All had
retail experience after leaving Dart-
mouth and from the inception of the
agency, in 1922, they have handled a
large number of retail accounts.

The Hutchins brothers discovered
that many of the so-called national
advertising agencies are not particular-
ly enthusiastic about the preparation
of “dealer help’ material. They
noticed that frequently local newspaper
retail advertisements of nationally ad-
vertised products were made out of a
national magazine advertisement by
merely decreasing the number of dots
in a half-tone screen, or substituting
the dealer’s name for the factory.

When Dealer Helps Don’t Help

Their retail store and retail adver-
tising experience told them that, from
a merchandising point of view, such
methods were usually futile and waste-
ful. So they decided to build business
for themselves by becoming specialists
in the preparation for the manufac-
turer of copy for local use in a man-
ner which the retailer would pursue if
he had the time and the ability.

The going was slow. The first of
the advertisements prepared and in-
serted by the Hutchins Advertising
Company, Inc., had to be fully
financed by retail dealers. Then came
the second stage when distributors par-
ticipated with dealers—and finally, as
in the case of Philco, when manufac-
turer, dealer and distributor all par-
ticipated in the advertising.

The winning of the Philco account
started when the Hutchins Company
did a good advertising job for a promi-
nent Philco dealer; then for a group
of dealers, and still later, on a co-
operative basis, for a distributor and
all of his dealers.

Early in 1930 Philco factory divi-
sion managers became interested in the
plan, and, as a result, began boosting
for its adoption on a_ wider scale.
Other groups of dealers and dis-
tributors took it up; but still the
Hutchins Advertising Company got no
part of the national advertising,
which continued to be placed through
Erwin, Wasey & Company, and, later,
F, Wallis Armstrong.

Finally came the stage when Philco
officials decided that the best results
would come from incorporating a
large part of the Hutchins plan as part
and parcel of the Philco sales contract,
and the decision to utilize this plan on
a nation-wide basis.

[134]

A duplicate of the real thing, except in size, the toy train sells for $19.50.

Mickey Mouse and New
Trains Help Lionel Out
of Bad Business Bog

The Lionel Corporation, makers of
toy trains and such, has worked itself
out of a $650,000 equity receivership
in eight months.

Mickey Mouse and gal Minnie, to-
gether with the streamline rage in rail-
road trains and the improvement in
Christmas business this Winter, aided
good sales management to turn the
trick.

It would be a good story if Mickey
had done it all alone. The comic
movie figure did enough, however, to
win special mention by Judge Guy L.
Fake, who dismissed the receivers in
United States District Court at New-
atk, New Jersey, January 21, and
handed the business back to its owners.

The facts are that Lionel, under an
agreement with Walt Disney, Inc.,
made 253,000 sets of Mickey and
Minnie on a tin wind-up handcar run-
ning humorously around a 27-inch
circle of track and sold them mainly
through department stores and chains.
The public paid $1 each for the sets.
This item, however, constituted less
than 5% of the total Lionel business.
But it was a percentage that Lionel
would not have had without Mickey.

A somewhat larger percentage of
added business was in the form of
streamline electric trams selling at
$19.50. The public interest in stream-
lining whipped up by Burlington,
Union Pacific and other railroads dur-
ing 1934, offered Lionel an oppor-
tunity in toy trains that it seized
eagerly.

The general upping of Christmas
retail buying did its bit for Lionel,
too. The company’s volume during
the holiday period was at least 35%
better than the Christmas before and
the 1934 total was up 30% over
1933.

So, under the sales managership of
Arthur Raphael, the company went
into high, paying off a receiver's bank
loan of $350,000 on November 30—
two months ahead of maturity—and
$296,000—the full obligation to cred.
itors—on December 31.

One of Lionel’s big problems is sea-
sonability. About 95% of ultimate
sales to the public are made between
Thanksgiving and Christmas—aided by
store demonstrators and by elaborate
display sets produced at the factory
during Spring and Summer.

Kids bought 253,000 of these.

The company is striving to level up
its year's selling with hot-weather
products. This year it has a novel
Easter item called the Peter Rabbit
Chickmobile—a take-off of the Mickey
Mouse handcar—and a line of spring:
driven boats. But its 12 salesmen
working out of New York, Chicago
and San Francisco devote most of their
early months each year to good-will
tours covering the thousands of out-
lets from coast to coast.

In past years Lionel advertising—
trade space during the whole year with
consumer copy concentrated into Sep-
tember, October, November and De-
cember—has run as high as $250,000.
Archer St. John, advertising manager,
looking hopefully into 1935, says this
year’s budget will be the largest in
company history. It will be placed
through Al Paul Lefton but has not
yet been apportioned.

SALES MANAGEMENT

——!

mam 4A re

SM’s Chicago Reporter Finds

Hotpoint’s New Show Hot Stuff

Somehow there’s a suspicious air of gaiety about this report from
Lester Colby, who decided that a heart to heart letter to the boss
was the only adequate medium for the expression of his wrought-up
emotion about a certain new sales plan.

Mr. Ray Bill, Editor,
SALES MANAGEMENT.

Dear Boss:

EMEMBER, you told me to
R hotfoot it over to Hotpoint and

get some hot pointers on this

new selling scheme they've
worked up? It’s a sort of show
they're taking out on -the road. They
call it “The Load Builders.” It was
a swell assignment. Lots of fun,
good eats, some dang good-looking
gals and, well, if you’ve got any more
assignments like this one it’s OK by
me.

Edison General Electric Appliance:
Company, Inc., is out on the edge of
the prairie a bit south by west of Chi-
cago. They've got a big plant out
there with a little theatre in it. The
show started at 10 a. m. and it was
still going at 4:30 p. m. It’s a bit
like the ‘Strange Interlude’—in
elapsed time; mindful of those Chinese
plays that take a week.

Plenty of Flesh and Flash

They use films, silent and sound;
a small cast of people, in the flesh;
records and mikes; some clever stage
set-ups, stoves and what not. They’re
sending eleven sets out on the road
and have more than 300 presentations
scheduled already. There'll be more.

When the show moves into a town
the idea is to have the utilities com-
pany call in all its salesmen, and in
some cases they'll come from 100
miles around. An official of the com-
pany will speak a little piece and the
district manager will explain that the
show has as its idea ‘To Help You
Sell.”

Then come “Hotpoint News
Flashes.” To get these pictures Hot-
point sent motion picture photog-
raphers out over the country. They
took sound pictures of executives who
did some specially fine jobs of selling
electric stoves in 1933.

Did you ever try to take notes in
a dark theatre? I tried. It can’t be
done. Not when the show’s moving
as fast as this one. But these flashes
were lively and full of enthusiasm.
One of the chiefs, from down in the

FEBRUARY 1, 1935

Tennessee Valley Development dis-
trict, told how he had sold so much
electric equipment last year that he
went to Washington to tell President
Roosevelt about it.

He told how tickled the President
was about it. There was a lot about
what “I” said to the President and
what the President said to “me.” Ap-
parently they got pretty chummy about
it. Anyway, a fat man sitting next
to me in the dark said:

“I gather this bird saw the Presi-
dent.”

Well, after that, George A. Hughes,
president of Edison G. E. Appliance,
appeared as a sort of Clark Gable,
or maybe it was Wailace Beery. He
was there in the films as big as life
and almost as natural. If he hadn't
chosen to be daddy of the electric
range (more than a million sold in the
last twenty years) he might have been
a celluloid star. Mr. Hughes’ pep
talk is done on the sound channel.
The film goes out with all eleven
“companies.”

Pierre L. Miles, sales manager, is
the next on the program. It got him
a bit fussed to sit there watching him-
self do his stuff. After wiggling
around in his seat a while he re-
marked, in whisper,

“I’m good, what? But, honest, do
I look like that?”

“In Person” Whams "Em

W. A. Grove, advertising manager,
and Edward Badenoch, a salesman,
then put on a personal appearance.
The salesman took the part of a doubt-
ing Thomas who couldn’t see how he
could sell electric stoves for $150
when “fuel type’ stoves can be had
for $50.

He was all “let down.”

Mr. Miles then gave a chalk talk to
show the real value of electric cookery.
He started out with two stoves, one
of each type, putting a value of $50
on each. To the credit of the electric
stove he added other values as fol-
lows:

Coolness, $15; cleanliness, $15;
convenience, $15; healthfulness, $15;
safety, $15; better results, $15, and
release of time, $15. With these ad-

ditional values, he said, the electric
stove is worth $155.

Then Miss Frances Weedman,
culinary expert, stepped in to prove it.
She told how under actual tests, start-
ing in a kitchen on a hot day last
summer, temperature in the room 80
degrees, she cooked comparative meals
On various types of stoves.

Using a coal stove, she said, when
the meal was done the room tempera-
ture had gone up 16 degrees; a flame
type stove raised the heat 13 degrees;
another, insulated, had raised it 4 de-
grees. But in the electric equipped
kitchen the temperature only rose one
degree.

She had three separate, complete
meals cooking in a modern electric
range, under a close ‘‘tent’’ of cello-
phane to retain the heat. On top of
the oven, under the cellophane, was
a saucer filled with roses. When the
dimner was cooked the roses were still
fresh.

Frances Weedman, who bakes cakes while
knocking reporters’ hearts into a cocked
. (or at least a high) hat.

Miss Weedman is a_ charming
demonstrator. She has a swell smile
and fresh, pink cheeks. Your corre-
spondent edged up after the demon-
stration pretending he was much
interested in the food she had cooked.
He peeped and sniffed. She said:

“If you like, grab a drumstick.”

With this encouragement he hinted
that he’d like to see a complete home
demonstration. No results.

Apparently Frances is immune to
suggestions and gray hair.

David C. Marble, production chief,
gave a talk on styling and building a
modern electric range. It was a com-
plete story of how value and beauty
are built in. He explained how the
buyer of a new range gets $1,000,000
worth of research and development
with his stove.

Then J. C. Sharp, a laboratory fel-
low, gave a demonstration called

(Continued on page 163)

[135]

- 1923 -
24,101,226

M.World 17,370,838
15,783,676
Journal 13,011,766
12,997,964
11,067,210
10,689,292
Tribune 9,590,400
E.World 8,258,736
St. Union 7,481,310

Times

Eagle

Amer.
Herald

Sun

Telegram 7,035,650
Mail 6,568,024
NEWS 4,392,034

_NEWS

* 1924 -
26,283,924

M.World 16,858,354
16,659,944
14,906,698
Journal 14,561,374
H. Trib. 13,306,960
13,268,308
Telegram 8,805,720
E.World 7,928,134
St. Union 7,275,066
5,850,580

Times

Eagle

Amer.

Sun

_ NEWS

ADVERTISING LINAGE in

* 1925 -
28,200,444

M.World 17,237,062
16,718,464
H. Trib. 16,525,824
Journal 15,057,218
14,705,916
14,183,094
E.World 8,921,428
6,832,472

Times

Eagle

Sun

Amer.

* 1926 -

29,788,828
H. Trib. 18,785,853
17,899,284
M.World 17,658,831
16,245,237
Journal 14,758,009
13,112,851
E.World 9,842,432
NEWS 7,881,770

Times

Eagle

Sun

Amer.

¢ 1927 -
29,710,606

H. Trib. 19,133,684
17,282,915
16,525,102
M.World 15,488,876
Journal 14,001,546
12,680,116
E.World 9,891,749
NEWS _ 9,311,191

Times

Eagle

Sun

Amer.

+ 1928 -
30,641,930

H. Trib. 19,639,113
18,587,608
16,608,149
M.World 14,139,141
Journal 14,039,215
12,436,180
NEWS _ 10,432,709

Times

Eagle

Sun

Amer.

Bk. Tms. 4,136,330
4,135,756
3,825,302

Post
Globe

Bk. Tms. 4,696,516
Post 4,434,416
Herald 2,355,910
1,875,438

1,173,542

Mirror

E. Bull.

Telegram 6,655,486
St. Union 6,365,280
Bk. Tms. 5,255,662

Post 9,059,968
3,926,302

Graphic 2,186,676

Mirror

Bk. Tms. 6,982,716
Telegram 5,803,533
St. Union 5,611,732
Post 5,181,281
3,699,719
Graphic 3,699,155

Mirror

Bk. Tms. 6,087,186
Telegram 6,063,903
Post 5,505,890
St. Union 5,460,790
Graphic 3,287,544

Mirror 3,138,857

SALES

E.World 9,940,209
Telegram 5,805,083
Bk. Tms. 5,565,738
5,551,377
St. Union 4,955,951
Graphic 3,082,829
2,013,013

Post

Mirror

MANAGEMENT

enn

PAA AEE A AA AAA A AY

In 1934... The News

among 11 New York City Newspapers was
IN ADVERTISING LINAGE

exceeded only by the New York Times
(another good newspaper published here)

But was second to none in advertisers’ expenditures!

Are you spending enough money in The News?

NEW YORK—1923 to 1934

- 1929 -
Times 32,378,135

H. Trib. 21,011,146
Sun —-:18, 156,668
17,907,895
14,545,021
[ii.World 13,650,242
NEWS 12,314,661

Eagle

Journal

DAA RIA RAAT AAA

Amer. 12,312,864
E. World 10,279,839
Post 6,193,460
Telegram 5,938,826
Ck. Tms. 6,634,580
St. Union 4,722,010
Graphic 3,960,618

Mirrcr 2,617,984

FEBRUARY 1,

- 1930 - + 1931 - - 1932 - - 1933 - - 1934 -
Times 26,624,102 Times 24,405,376 Times 18,126,997 Times 17,299,293 Times 18,378,352
H. Trib. 17,524,038 H. Trib. 16,352,736 Eagle 13,364,122 NEWS 13,914,016 NEWS 15,850,879
Sun 15,896,856 Sun 15,495,357 NEWS 13,279,947 Eagle 13,785,491 Eagle 15,087,205
Eagle 15,877,951 —_— Eagle —— Sun 13,165,927. Sun _—11,978,003-H. Trib. 12,695,996
Journal 13,366,656 | NEWS 15,135,308 J H. Trib. 11,863,946 W.-Tel. 11,323,761 Sun = 12,253,852
NEWS _ 13,209,975 | Amer. 13,803,734 Amer. 11,701,013 +H. Trib. 11,203,082 W.-Tel. 12,083,672
Amer. 10,794,477 Journal 13,489,336 W.-Tel. 11,598,449 Amer. 10,735,077 Amer. 11,605,586
M.World 10,627,224 W.-Tel. 12,989,265 Journal 9,697,524 Journal 8,147,719 Journal 8,605,815
E.World 9,345,790 Bk. Tms. 6,159,799 Bk. Tms. 5,440,351 TimesU. 4,466,837 TimesU. 4,710,933
Telegram 5,830,406 Post 3,834,591 Mirror 2,928,080 Post 2,526,301 Mirror 3,373,754
Bk. Tms. 5,209,529 Mirror 3,203,341 Post —«2,834,155 Mirror 2,386,980 Post —2,671,474
Post 4,655,837 St. Union 3,054,782 Graphic 1,174,126

St. Union 3,385,871 Graphic 2,770,191 St.Union 484,589

Graphic 3,344,327
2,644,755

Mirror

1935

SOURCE: New York Evening Post
for the years 1923-1927; Media

Records for 1928-1934.

ANTLE LAMP COMPANY

OF AMERICA, of Chicago,

whose business comes almost

entirely from the farm areas,

has broken all sales records for its

twenty-seven years of business in the

last two years. During the entire de-

pression era it has never cut one dollar

out of its advertising appropriation and

it has never experienced any sales
slump worthy of the name.

Increase in sales volume for the fiscal
year ending April 30, 1934, was 40%
over that of the preceding year. Since
then business has been averaging about
30% over that record.

This company does not sell a
“cheap” item. Its main line is the
widely known Aladdin kerosene man-
tle lamp. Prices range from $4.95 to
$13.00. Chief “competing” items are
low-priced old-style kerosene lamps
which sell for from 50 to 60 cents, as
a rule.

“Our best territory has been, is and
probably will be the great agricultural
Central West, the upper part of the
great Mississippi Valley,” Bert S. Pres-
ba, vice-president, told SM last week.
“Our greatest sales gains, however, in
the last few months have been in the
South. Except for that limited district,
mainly in the plains belt, where the
drought was extraordinarily severe last
Summer, the farmer is in better condi-
tion today than he has been for years.

Well Chosen Dealers Stick

“There are approximately 6,500,000
farm homes in the United States. We
have sold them, in the last 27 years,
more than 4,000,000 Aladdin lamps.
Only one farm home in eight has elec-
tricity. That means that fully 5,775,-
000 homes depend on kerosene for
lighting. These homes, to be properly
equipped, ought to average six lamps
to a home or about 34,650,000 lamps.

“The business was started 27 years
ago with a one-inch advertisement
which appeared in a farm . It
was continued as a mail order business
until 1928, when we decided to dis-
continue mail orders entirely and sell
through franchise dealers. We made
the switch-over in three months and in
that time installed more than 10,000
dealers.

“We selected our dealers with the
utmost care, one to a town except in
the larger centers. Our first call was
made on the local banker. Our field
man would say to him, ‘I have come to
you to ask your advice!’ He told him
we wanted a progressive hardware man

[138}

Farm Papers and Spot Radio
Reach Farmers for Mantle Lamp

to handle our line. He said we want-
ed one who would pay his bills. We
wanted a safe dealer who had energy,
push and some imagination.

“His second call was on the local
newspaper. He talked to the publisher
or some executive of the newspaper
who knew local dealers and conditions.
He told him we were not seeking the
hardware dealer who might have the
finest store front or even the biggest
business. We did want to find the
hardware dealer who had the best farm
trade.

“Our field men talked with other

Based on an interview by
Lester B. Colby with

BERT S. PRESBA
Vice-President
Mantle Lamp Company of America,
Chicago

citizens of the town. If these local
men pointed their fingers at one par-
ticular dealer, our man approached
him. The dealer was told what we
could do for him and what we ex-
pected him to do for us. If the deal-
er selected could not be signed up at
that time our man left the town with-
out signing anyone. Later he would
come back and try again.

“The result is that our credit losses,
even in the darkest years of the depres-
sion, have been practically nil. We
have had to cancel the franchises of
very few dealers.

“We have preferred, from the very
beginning, dealers who carried specialty
items in other lines. We think they
are more vigorous and better salesmen
than those who don’t. We have pre-
ferred, too, dealers who advertised;
men who went out after business.

“During our early years we adver-
tised almost exclusively in farm papers.
When radio came in, we added that.
Our company was the first to sponsor
the barn dance program over WLS.
As the barn dance program grew we
cut in on the program for a half-hour
or so each evening.

“We early began to sponsor the mar-
ket reports over KDKA, Pittsburgh.
We now use approximately 100 sta-
tions. These are scattered from Ban-
gor, Maine, to Spokane, Washington,
and as far south as New Orleans. We
use two Canadian stations. We do not
use the chains because we prefer spot

broadcasts in the farm sections and de.
sire stations that have special programs
aimed at the farmer.

“We use stations in Chicago, Wash.
ington, D. C.; Denver, Detroit, New
Orleans, Kansas City, Minneapolis,
Salt Lake City, San Antonio and Dallas.
But we also use stations in places as
small as Carthage, Illinois; York,
Pennsylvania; Beaumont, Texas, and
Cape Girardeau, Missouri. We are
not after the greatest number of lis.
teners but the greatest number of farm
listeners. That’s why we use a station
in Decorah, Iowa, but none in New

York City.
Farm Market Better Than Ever

“When many business organizations
were cutting their advertising appro-
priations, two or three yeats ago, we
said, ‘If business is slipping we must
advertise as much as ever to get as
much business as possible.’

“When our business remained good
and got better, compelling us to oper-
ate our factories on increased sched-
ules, we did not say ‘Business is good.
We can reduce our advertising.’ In-
stead of that we said, ‘We must con-
tinue our advertising so that business
will not only remain good but may be
even better.’

“I have the utmost confidence in
coming farm business. We are in very
intimate touch with farm conditions.
With the single exception of the farm-
ers in the drought area, the farmer is
today, with the best prices in years for
his goods, in the best buying condition
he has been in in a long time. Good
rains have been common throughout
the drought areas this Fall. Heavy
snows have followed the rains.
Drought has reduced the carry-over of
grains. The farmer has hope of good
crops” and good prices in 1935.

“It is my opinion that the farmer, in
spite of the fact that he is paying off
heavy debts, will buy much. It is very
possible that the farm market will be
bigger and better in 1935 than it has
been in ten or a dozen years.”

Survey of Spending Power
to be Published April 10

Sales Management will publish
on April 10 a survey of Spending
Power, giving for every county in
the United States figures on Pop-
ulation, 1934 New Car Sales both in
number and percentage, a break-
down of Retail Sales not available
in published Government docu-
ments, and 1934 Spendable-Money
Income.

Much of this information will
also be printed for all cities above
10,000 population and many col-
umns of additional basic market
data be available by states.

SALES MANAGEMENT

J

id de.
Ptams

Vash.
New
Polis,
allas,
eS as
Y ork,
and
are
* lis.
farm

ition
New

Exit, Pinaud’s Barber:

Products Go Feminine
in Sales Appeal

IELDING to demand on the

part of American women,

Pinaud, perfumers, after thirty

years or so of stressing their
masculine specialties primarily, are go-
ing back to feminine appeal. The
transition, inspired by the increasing
demand for Pinaud products by femi-
nine consumers, is a return rather than
a new departure. Although within the
past three decades the firm’s advertis-
ing in this country has stressed its hair
conditioner for men, the seventy-year-
old house originated in Paris as per-
fume specialists—and thirty years ago
was known largely for its women’s
products.

Although they will continue to serve
masculine elegance with their Eau de
Quinine, several of their other prod-
ucts, particularly the Lilas de France
skin lotion and ‘‘Six-Twelve” pom-
made, are being presented now from
the feminine viewpoint.

Within a few months, the French
barber with the pointed mustaches and
the insinuating moue, a landmark of
the American barbet shop scene for
decades, has completely disappeared
from the picture. The new Pinaud
car-cards—a transitional stage—have
adopted a rather whimsical attitude
toward this whole falling hair busi-
ness. Two little heads, one luxurious-
ly crowned and the other completely
bald, confront each other; the caption
is “Hair Today, Gone Tomorrow—
Avoid This Tragedy.”

Back of the new slant, which has
been exciting much comment around
town, is the only Frenchman in the ad-
vertising business in the U. S.—Paul
Frank, account executive for Pinaud
in the Blaker Advertising Agency.

According to Marcel Michelin, vice-
president of Pinaud, the next step will
be the complete embracing of the
woman’s viewpoint, the new adver-
tising stressing the Lilas de France skin
lotion and the “Six-Twelve’ eyelash
beautifier. Soon to appear in the new
Pinaud ads and displays is an exquisite
and romantic pastel, interpreting the
“Lilac Time” theme, made especially
for the concern by Pierre Brissaud,
well-known French painter.

“What happened,” Mr. Michelin
said, “is simply the old familiar story.
Woman, eternally on the prowl for

FEBRUARY 1, 1935

new and better aids to beauty, dis-
covered or—rediscovered—that the
products on husband’s shelf in the
medicine cabinet really did as much,
if not more, for her as for him.”

In the first place, Pinaud’s Pom-
made Hongroise, for years sold as a
masculine mustache wax, began to
shoot up in sales tremendously three
years ago, with no advertising or pro-
motion. The reason was unearthed-—
eventually Madam had realized that
it was perfect for the eyelashes and
brows. As a result the “Six-Twelve”
beautifier, with no promotion, in three
years became one of Pinaud’s three
leaders.

In the second place, it was learned
from dealers that an increasing pro-
portion of sales of the Lilas de France,
hitherto sold almost exclusively as a
men’s shaving lotion, were being made
to women.

“Pinaud,” said Mr.
Michelin, “had no
choice. It would have
been foolish not to
follow the trend. Our
new campaign, begun
this Fall, is designed
to present principally
through radio, display
and newspaper adver-
tising, through pro-
motion and publicity,
the feminine appeal
inherent in our major
products, and above
all in our skin lotion,
Lilas de France.
Women themselves
have given us the clue
to its remarkable
potentialities. Our ad-
vertising will present
it from now on as
the world’s most
versatile perfumed
skin lotion — suitable
to both men and
women, but with spe-
cial virtues for the
feminine toilette.”

The radio program,
a musical review call-
ed “Lilac Time,”
which opened Decem-
ber 1 on the WABC-
Columbia network

with a hook-up of 15 stations, proved
itself so successful in a month that
the coverage was more than doubled
and 19 stations embracing the Far
West and the Pacific Coast were
added. The program presents Arthur

Murray, nationally known dancing
master; Earl Oxford, young baritone
lead of “Life Begins at 8:40,” and
the Chevaliers’ Octet, a male chorus.
The dancing lesson feature, unusual on
the air, has elicited a most favorable
response.

“December, our first month, brought
us 25,000 letters on the original net-
work of 15 stations,” Mr. Michelin
said. “Interestingly enough, we found
that one-third of the letters written
in response to our gift offer of Pinaud
products also requested the chart offer-
ing our dancing ‘lesson, and many
praised it specifically.

“While it is yet too early to gauge
accurately a sales reaction, soundings
taken in the market have indicated a
definitely brisker movement of Pinaud
goods,” the vice-president asserted.
“A representative who has visited one
shop a day also reports that shop-
keepers find a marked spurt in Pinaud
sales. There is no doubt that the pub-
lic, particularly the feminine public,
is responding to the new slant in
Pinaud advertising and merchandis-

ing.

The “lilac time” pastel above, soon to appear widely in
Pinaud advertising designed to appeal to women, replaces
the French barber, below, so well known that in speak-
easy days almost any inebriated gentleman could get a

laugh by striking a pose and mincing “Scurf

”
.

Who is going to eat the nation’s
huge volume of dog food—dogs or
humans? And how big a factor are
meat packers going to become in can-
ning it?

These problems worry many of the
156 manufacturers who produced
$40,000,000 worth of dog food in
1934. And they worry principally
because of the 6-point line, ‘Fit for
human consumption,” which 16 of
them print on can labels to add sales
appeal for pet lovers. The line does
more. It puts dog grub onto people’s
tables.

Take the word of L. I. Becker for
it, about 20% of last year’s canned
output was consumed by humans. He
is secretary of the National Dog Food
Manufacturers Association and has
made some studies of the problem
himself, hoping something can be
done to save dog food for dogs and
protect humans against malnutrition.

Half the 20% was shipped out of
the country, mainly to Mexico, says
he. The other half stayed within our
borders, purchased principally by Mex-
icans in the Southwest, negroes in the
South and people suffering from de-
pression in various centers. It com-
peted at 6 to 10 cents a can with hash
at twice the price—sometimes pro-
duced by the same canners, but of dif-
ferent ingredients.

Meat packers created the problem.
They can under the eye of the U. S.
Bureau of Animal Industries and have
the right to use on their labels: ‘‘U.
S. Inspected and Passed; Fit for Hu-
man Consumption.” Although they
produced only about 25,000,000 of
last year’s 382,000,000 cans of dog
food their bit of 6-point type disturbs
the whole industry.

Big Shots Enter Field

And, it must be added, the entry
of Swift, Armour and smaller packing
fry into the dog food business, which
may compensate them for their loss to
synthetic fertilizers, harasses Chappell
Brothers (Ken-L Ration), Simpson
(Doggie Dinner) California Animal
Products Co. (Calo), who together
can 40% of the nation’s dog food, and
gives certain worries to the association.

Up to now the big packers have
not plunged deeply into dog food.
But they are trying it out. It may
prove a — outlet for lips, melts,
lungs, kidneys, hog livers, ground
fresh bone and so on down closer to
the squeal which, traditionally, is all
the packer cannot sell. Morrell of

[140]

Meat Packers and Hungry People
Worry Dog Food Makers

Ottumwa, Iowa, for months has been
doing a national job of advertising
and promotion for “Red Heart” in
order to get nation-wide distribution.
The others have only pecked at mar-
kets here and there. But their volume
is growing—and the 6-point line on
some of their cans is becoming a mar-
ket factor that leads dog food into
diverse channels and queer quirks.

Possibly the new Council on Chem.
ical Standards in Dog Food, whic
goes to work February 1, will be able
to lay the groundwork for a new peace
in the industry. Meantime 156 dif.
ferent kinds of dog food both in cans
and in dry form continue to stream
from factories big and little. Some
of it really is fit for human consump.
tion. But some is so low in nutritional
value that the “uplift” factors in the
business hope it can be changed be.
fore many more people buy it for hash
—blindly selecting any kind whether
“fit for human consumption” or not.

Join the GE

Toprives choad) Be

Male? ee ee Pinte Ee ‘

t.

A MA L Bi2100%
.

OFF TO NY: fr 2nd Annual Bermuda Cruise —
i Quota Men /

Hop a hand car ies pees

SS ~Y ie
> y aay
“
3

Grins were made a part of

the score sheets in GE contest.

GE Salesmen Bask in Bermuda
as Reward for Busting Quotas

The Climateer’s Club, comprising
56 of the 78 salesmen of the air con-
ditioning department of the General
Electric Company who earned their
quota of sales during 1934, returned
January 14 from a seven-day trip to
Bermuda. It was their second annual
cruise, the reward of winning a con-
test which started on April 2 and end-
ed December 29.

To earn the quota of 8,750 points,
the salesmen were required to sell the
equivalent in credit points of 25 oil,
furnaces during the period of the cam-
paign. Each sale of an oil furnace
counted for 350 points. Other air
conditioning equipment, including gas
furnace sales, also counted toward the
quota.

Over 1,000 salesmen from all over
the United States took part in the
campaign. More than 100 dealers

were represented and, with the aid of
sales promotional material supplied
from New York headquarters, a great
amount of enthusiasm was created
among the men which resulted in a
high rise in sales.

To stimulate business and give more
salesmen the opportunity to make the
Bermuda trip, all men who sold 15
oil furnaces between August 20 and
December 29 were entitled to join
the quota men. The winners of this
division were called Tenderfeet and
although they enjoyed the privilege of
joining the Climateer’s Club, they were
not presented with the same jeweled
pin, and did not have the choice of
accommodations on board ship. Cli-
mateers who had made their quota for
the second year had another jewel
added to their pin.

The success of the campaign was

SALES MANAGEMENT

due to the efforts of Arthur C. Roy,

mana of advertising and sales
promo: on of the air conditioning de-
partment. Last year, as sales promo-
tion manager, Mr. Roy successfully
comp! ed the “On the Line’ cam-

paign which resulted in more than
62 Climateers taking the first annual
cruise to Bermuda.

The campaign which recently ended
was stimulated by promotion material
created by Mr. Roy. A series of three
cartoon posters, 3 by 4 feet in size
and drawn by Doc Rankin, were dis-
tributed to all the dealers every three
months. The idea behind the posters
was to get the salesmen to New York
where they would board the ‘‘Monarch
of Bermuda” January 5. A continu-
ous railroad track, starting from the
dealers’ headquarters, carried on
throughout the three posters and as
each new one was added it coupled
up with the tracks on the preceding
poster.

Each salesman was represented on
the cartoon map by means of a small
cutout in the form of a handcar. The
milestones represented the points
gained by sales and the handcar with
the salesman’s name was advanced
along the track. Humorous cartoons
scattered all over the poster kept the
salesmen in good humor as they strove
to reach New York.

Weekly Charts Keep Steam Up

A sales chart, covering weekly
periods, was also part of the poster
and each week the dealer recorded
the accumulative number of points.

Supplementing the giant posters, a
weekly bulletin was issued entitled,
“The Bermuda Breeze.’ In this pub-
lication the weekly standings of all the
salesmen were listed, besides sales talks
by Bill Scherff, in charge of oil fur-
nace sales; Bob Thurston, in charge of
air conditioning sales, and Jess Welch,
who heads the gas furnace sales de-
partment. Cartoon broadsides on Ber-
muda and stories by Doc Rankin were
also part of the bulletin and created
much interest.

Accompanying the group was the
only woman member of the Climateers
Club, Miss Gertrude Swanson, a su-
pervisor from Kansas City, Missouri.

\t the Climateers’ banquet, held in
Bermuda, the following officers were
clted for the coming year: President,
William Wheeler, New York; vice-
president, John Caine, Albany; secre-
t. -y, Kenly Bell, Newark; sergeant-at-

is, Hugh McKeegan, Brooklyn.

Tentative plans are now being

‘mulated for the third annual cruise

<ing Climateer quota winners on a

ip early in 1936 to Havana.

EBRUARY 1, 1935

af

Phillips Introduces 5-Cent Soups
in Aggressive New York Campaign

In large space advertising in 19
newspapers in the New York metro-
politan area, and in a_twice-a-week
radio program there, Phillips Packing
Company, Cambridge, Maryland, has
started to promote four of its “South-
ern soups” at 5 cents a can. These
four are tomato, vegetable, bean and
pea. Other Phillips soups, say the
ads, “‘sell for a penny or two more.”

Thus, with a lower price, Phillips
seeks to diminish the dominance of
Campbell Soup Company in the largest
market. Campbell's tomato soup i
now being sold in New York at three
cans for 20 cents. Other Campbell
soups are 9 and 10 cents a can.

Against the competition in recent
years of Heinz and Hormel, selling
their soups in New York usually at
two for 25 cents, Campbell has stood
up pretty well. The arrival of an ag-
gressive lower-priced competitor, aid-
ed by a year-round advertising cam-
paign, however, may alter the situation.

Under the direction of E. J. Rinaud,
broker, Phillips has gained for its
soups about 75% distribution in the
metropolitan area. It has got its prod-
ucts into most of the leading chains.

Use Dailies, Radio

The advertising campaign, under
John Bennett Bissell of Paris & Peart
agency, employs weekly insertions in
all the newspapers—five columns by
250 lines in three New York City eve-
ning papers, and four columns by 200
lines in the sixteen other New York
City, Long Island, Westchester and
New Jersey papers. Initial orders cover
five weeks. It is the intention of the
Phillips Company to run the cam-
paign for 45 weeks, with its soups and
other products being promoted later.
The radio program presents the
“Phillips Singing Chef” Thursday and
Friday mornings over W ABC.

Displays and large window, counter
and truck posters, in eight colors are
being used by dealers. In a broadside to
the 24,000 grocers in the New York
metropolitan area, the Phillips Packing
Company pointed out that 119,997,000
cans of soups are purchased annually
there. With a total of 10,000,000
messages weekly, in class and mass
newspapers, and “‘a retail price within
the reach of every food buyer,” Phillips
intends to win more of this volume.

The company, headed by Col.
Albanus Phillips, has increased its vol-

been at new high levels. Phillips soups

soup campaign includes:
Journal, Sun, World-Telegram, Dail)
News and Herald-Tribune; Bronx
Home News, Brooklyn Eagle, Jamaica
Press, Mamaroneck Times, Mt. Vernon
Argus, New Rochelle Standard Star,
Ossining Citizen-Register,
Star, Port Chester Item, Tarrytown
News, White Plains Reporter, Yonkers

and vegetables are now being sold
from coast to coast.

The newspaper list for the 5-cent
New York

Peekskill

Herald-Statesman (these last nine be-
ing sold together as the Westchester
Newspapers), and Newark News and

Paterson News.

PHILLIPS aor pg
Southern Sours

- AND vies 6" CAN

HILLIPS
5 xz: SOUPS

General Mills Opens School
To Boost Bread Sales

Local bakers can build up sales vol-
ume in “‘specialty’’ breads—potato,
new types of rye, crusty ‘‘old-fash-
ioned’”’ kinds and the like—without
losing other bread sales, General Mills
tells the industry. General Mills has
tried out the idea in two test cities
of 100,000. Now the company starts
a school for bakers at its mills in
Minneapolis. First announcement in
Bakers Weekly, January 26, says
the school begins April 8 and runs in
10-day terms. Any baker may send a
man at no cost beyond traveling and
living expenses. The school teaches
bakers both how to make the special-
ties and how to merchandise them.

[141]

|
tl
|
/
|
|

Allan Brown has been a discry,
inating buyer of business

space for twenty years. In addit,
to doing a superlatively good 9
vertising and promotion job for
Bakelite Corporation he has giv
generously of his time to professig,
al associations. He has served ,
President of both the National }
dustrial Advertisers Association qj
the Technical Publicity Associatiq,
as a Director of the Association ,
National Advertisers and az ,
member of the Executive Commit
of the Advertising Federation
Allan Brown America.

BAKELITE is known as THE MATERIAL OF A THOUSAND USES—trom teething
rings to timing gears, from arrows to abrasive wheels, from varnish resins
vanity cases, from desk tops to dentures.

The illustrations represent typical applications of each of the six broad clasii
fications of Bakelite materials.

The Kellogg hand set telephone of Bakelite Molded: the Gilbert Rohde table wih
Bakelite Laminated top: a yacht protected with a coating based on Bakelite
Synthetic Resin; a fast-operating grinding wheel bonded with Bakelite Resinoit:
a denture formed from Luxene—a new Bakelite Resinoid: a Revolite raincoc
processed with a flexible resinoid: an armature winding with protective coatin
of Bakelite varnish of the baking type: an incandescent lamp bulb sealed to is
brass base with Bakelite Cement: and a group of brilliant jewelry items fashioned
from the cast resinoids.

The company does not make finished materials. Its sales promotion and adver
tising is of an educational and sales-stimulating nature—the creation of a demant
for Bakelite by showing how it can be used to better existing products or in the
fabrication of new products, new designs.

THESE GOOD ,
AMERICAN BUILDER and BUILDING AGE, Chicago DRY GOODS ECONO
BUSINESS PAPERS ARCHITECTURAL RECORD, New York ELECTRICAL DEAL
AUTOMOTIVE MERCHANDISING, New York ENGINEERING AND

BUILD BUSINESS BAKERS REVIEW. New York FLEET OWNER. New

BAKERS WEEKLY, New York HARDWARE AGE.

The sixth of a series sponsored

DOMESTIC ENGINEERING, Chicago JEWELERS’ CIRC

BUILDING SUPPLY NEWS and HOME APPLIANCES, Chicago HOTEL WORLD-REV!
CHEMICAL AND METALLURGICAL ENGINEERING, New York ICE CREAM TRADE It
CONFECTIONERS’ JOURNAL, Philadelphia IRON AGE, New Yo

“Busines p'
Avenue §p

Says Allan Brown, einc

BOOT AND SHOE RECORDER, New York HARDWARE RETAILUBpo

sypers Provide an Economical
2$pecific Markets’

wn, sing Manager, Bakelite Corporation

“B USINESS and class publications provide the ad-
vertiser with an economical avenue of approach
to specific markets. They also give the advertiser an
opportunity to custom-build his advertising copy so
that it is in tune with the subject matter of the editorial
columns.

"For twenty-five years Bakelite Corporation has ad-
vertised in hundreds of business papers covering
numerous industries. They have served as a spear
head for our entire advertising and sales promotion

rething .
sins og «= CAMpatign.
jad “A business paper that is properly conceived and

well edited renders a valuable service to the industry
ewif OF profession which it covers. By maintaining a high

er rate of reader interest, it provides the advertiser with
$1N 014;
neal a mental market place for his wares, where the buyer

me meets the seller on the common ground of mutual

toad interest.”
rdver:

mand

“| (Maw

CONOR York MACHINERY, New York

EALE! MILL AND FACTORY, New York

AND MURNAL, New York NATIONAL PETROLEUM NEWS, Cleveland

New NATIONAL PROVISIONER, Chicago

GE. N OIL AND GAS JOURNAL, Tulsa

ET AILEBpolis PROGRESSIVE GROCER, New York

REVO ork RAILWAY ELECTRICAL ENGINEER. New York

— So REFINER AND NATURAL GASOLINE MANUFACTURER. Houston
EI - RUG PROFITS, New York -

ADE lew Yori SALES MANAGEMENT, New York

w York STEEL, Cleveland

CULAREE. New York TIRES, New York

When the Sales Manager Has
the Itch to Use a Blue Pencil

Far be it from us to deny the sales head of the business the
prerogative of criticizing advertising copy from his own
practical point of view, but we do think this earful from
Ayers’ copy chief might be taken seriously to heart by many
men on the selling side of the fence

BY T. HARRY THOMPSON
Copy Supervisor, N. W. Ayer & Son,
Philadelphia, Pa.

HERE have been a great many

definitions of advertising—some

of them profound, some of them

inadequate, some of them just
plain blah. If I were asked to reduce
the whole subject of advertising to its
simplest terms, I believe I would say
that the advertisements are “person-
alities in print.” After 24 years in
the business, that’s the way it all adds
up as I see it.

I do not claim any originality for
my definition, as many men before me
have spoken glowingly of the adver-
tisements as being “salesmen in print.”
That's the ideal, of course, for the ad-
vertisement that does not sell goods or,
at least, an idea, is worth nothing.

Some of the advertisements are not
like any salesmen that you and I would
like to think of ourselves as being.
Some of them have the austere dignity
of the Lord Mayor of London. Some
of them are as grotesque as that mag-
nifico would look if alcoholically over-
subscribed. Some of them are just
tired, over-worked peddlers, groaning
beneath a load of mops, brushes, tea-
kettles and other housewares.

But I think you can agree with me
that, salesmen or not, the advertise-
ments are personalities. This is as it
should be. The published advertise-
ment is the representative of the house
whose brand-name it carries, whose
signature adorns it. Properly, it is the
picture of that house which the read-
ing public gets. You can now see the
responsibility each advertisement car-
ries, whether it is a small, so-called
rate-holder or a four-color smash.

You can see, too, that the advertise-
ment should be a true reflection of the
personality of the firm behind it. A
publisher of an Oxford Bible wouldn't
get very far with his public by head-
lining an advertisement ‘“Hotcha!’’ and
running it in Ballyhoo. The person-
ality would be out of character. The
same headline, however, might be very
much in key for a moving-picture fea-
turing the newest thing in dizzy

[144]

blondes or the hottest stuff in hoofers.

An advertiser of padlocks would be
well within the limits of truth to ad-
vertise that ‘Our business was founded
on dishonesty,” for, without wide-
spread dishonesty, there would be no
market for padlocks. But the person-
ality of the advertisement would hardly
do. It is all right to inject a pleas-
antry into a sales-talk or into a printed
advertisement, but the out-and-out
clown in the flesh belongs in Holly-
wood or on the radio, and, in print,
in the comic weeklies.

If flesh-and-blood salesmen were
pulled and hauled and mauled the way
printed salesmen are, it would be a
sad world. Can you imagine what the
same sort of tinkering would do to
salesmen? “I don’t like that gray
necktie,” I can hear the president say-
ing. ‘Let's make it orange and blue.”
“No,” the sales manager chips in,,“‘my
vote is for a green polka-dot.” “I
don’t like those tan shoes,”” the factory
superintendent says. He’s an impor-
tant factor, the superintendent, so the
president compromises: “Suppose we
make it one tan and one black.”

Ridiculous? Of course. But that
is pretty much what happens when a
committee lays hands on advertising
copy.

Certainly, it’s all right to have sug-
gestions and criticisms. But when they
are all in and carefully weighed, the
thought should be given to the copy-
writer to express in his own words.
Then the copy will hang together as a
piece. It will be smooth and orderly,
and not have a tan shoe on one foot
and a black one on the other.

I wonder how many of you will re-
member this mild diatribe from a
creative advertising man, the next time
you are in a meeting called to pass
judgment on a batch of layouts and
copy. I wonder if I can persuade you
to resist that impulse to scribble
changes on the copy itself, instead of
making a few notes to be handed to
the copy-writer or his representative.

If you were ordering a portrait in
oil of yourself or your wife, I c..'t
imagine your saying to the pain
“Hey, lemme have that brush a n
ute,” and then going over to the can. as
and changing an ear or a nose. Nor
can I think of you as borrowing a
chisel and mallet from a sculptor ‘o
put your personal ideas into wo
When you have suggestions or criti-
cisms, you talk them over with the
painter or sculptor, instead of borrow
ing his tools and attempting the work
yourself.

I am not trying to say that an adver-
tisement is a work of genius and there-
fore inviolate, but I do imsist that it is
something for the hand of a skilled
writer. It is a “personality in print”
and personalities are not amenable to
alteration. At least, if any change
seems necessary, it should be made by
the person who created the original.

If you will remember the germ of
this plea the next time there is a mect-
ing on copy, you stand to make a
friend for life. The copywriter is go-
ing to work nights to please you
next time. He will go through
smoke and fire for a few kind words.

~ “|

mee Ay

Shadow Photograph:

Heald Machine
Company, Worcester, Massachusetts,
makes internal grinding and precision
boring machines. So highly specialized
are they that the firm estimates it has
only 350 potential customers. Therefore
the advertising must be distinctive and
economical, Cost of cuts, electros and
retouching was often as much as the ad
space. With shadow photography, the
engraving charges have been pared, be-
cause the picture is made right the first
time and needs no retouching. Too, the
process “identifies the house as well as
the machines because it smacks of reali-
ty,” says Ad Manager Lewis A. Hastings.
A spotlight and secondary lighting to
soften the edges of shadows, a_ black
background and a light gray paint on
the machine give the best results on the
ten-ton grinders. The photographs are
used in direct-mail booklets and in trade
journal pages.

SALES MANAGEMENT

ar

th

*"

he’s told....

This started out to be a story about the lady-who-listens-

in-the-kitchen, jotting down the CBS recipes she hears. *
But how about Dad? He’s not shown here, but he won’t
y | be left out of the radio picture. He tells her of a soup he
wants to try—because he’s been listening evenings.* And
there’s Johnny and Judy, of course. For the first time in
their lives, they’re actually excited about cereals and
milk*— because their favorite voices on the air tell them @ America’s Little House — exclusive
they’re good. @ The whole family listens—and does what ae ne etal he bs ath | i
it’s told— when the telling is as easy-to-take as the fam-
ily’s favorite CBS programs. Little wonder CBS food advertisers doubled their
schedules in ’34. Or that in January they’re already 20% ahead of last year. @ So
are cigarette and automobile advertising on CBS—and almost everything else in
the price-brackets between. The world’s largest radio network is a swift and
lively route to twenty-million families— who buy the things they’re told to buy!*

*We'll be glad to show you proof...* and proof...* and proof.

CBS/

COLUMBIA BROADCASTING SYSTEM

485 MADISON AVE., NEW YORK e« 410 N. MICHIGAN AVE., CHICAGO, ILLINOIS

WORLD’S LARGEST RADIO NETWORK °* 97 STATIONS IN 95 CITIES

(The fact that SALES MANAGEMENT is
getting so much interesting mail as a result
of the article by J. Allen Hovey, in the
December 15 issue—the one entitled, “Will
Broader Gaged Advertising Copy Recapture
the Fed-up Consumer ?””—is evidence enough
that there is a goodly measure of inherent
force in the idea expounded. Letters from
several other executives, in reply, were
printed on “The Postman Whistles” page
in the January 15 issue. The comments
below are from an executive of a men’s
clothing manufacturing concern, and are of
special interest because this was one of the
lines of business specifically cited by Mr.
Hovey in his original discussion——THE
Eprrors.)

ALLAN HOVEY, in your

issue of December 15, suggests

e broader gaged advertising in

order to capture bigger and

better results. Toward the end of his

story he expands into the thought that

a man’s clothing manufacturer could

make his advertising more interesting

and service-giving by dipping into the
accessory situation.

We have toyed with this idea in the
past, but used it only to a slight
extent. So have other clothing manu-
facturers. However, to do the idea
justice, it would have to be worked out
as a well integrated and sustained pro-
gram. But approaching the job on
that basis, we usually find that it falls
of its own weight.

Many clothing stores do not carry
furnishings, and often a clothing
manufacturer sells several accounts in
a town, some of which carry furnish-
ings and others of which do not.
Promotion of accessories would seem
to favor the stores who carry furnish-
ings. It is true that the idea might
benefit both types of stores in the end,
but, as a rule, the dealer who carries
clothing only would be hard to con-
vince of this fact. Most dealers want
clothing advertising to be concentrated
on clothing and not diluted with other
matter. Since the dealer is where the
point of sale takes place (both whole-
sale and retail), his feelings must be
reckoned with and respected.

Even though a merchant may carry
an excellent line of accessories, it is
probable that sooner or later the cloth-
ing manufacturer, in advertising acces-
sories, would include some item which
the merchant does not happen to have,
and this would at once embarrass the
dealer and damage his good will
toward the manufacturer.

Clothes for young men fall into a
number of different types which, for

[148}

It’s Surprising, Mr. Hovey, How
This Discussion Goes On and On!

BY
FELIX L. LIPPMAN

Keller-Heumann-T hompson,
Rochester, New York

example, might be characterized as the
Wall Street type of clothes, Fifth Ave-
nue type, Broadway type and Univer-
sity type. The first two types constitute
the best dressed men and the best taste
in clothes . . . the Broadway type is
more extreme, and the University type
is peculiar unto itself because it is
highly individualized. The above
named groups can be added to and
deserve detailed explanation which can-
not be gone into here, but we simply
mention these different types to bring
out the fact that each type of group
necessitates its own particular kind of
accessories in keeping with the clothes
worn, and it would be rather compli-
cated, not to say confusing, to cover
the accessories that apply to all types.
On the other hand, it would be dan-
gerous to confine the accessory adver-
tising to any particular group, because
few manufacturers want to link them-
selves up definitely or by implication
with any one group.

Clothes Preferences Vary

Towns also differ, ranging from
metropolitan centers through medium
size towns down to small towns. In
addition to the variety of towns, there
is also the matter of geography which
is important. For example, the South
is more responsive to light colors, but
wears few double breasteds and no
overcoats to speak of; the Coast wel-
comes novelty attire more readily than
the East.

It is true that accessories could be
incorporated in clothing advertising in
a general way, but as long as it is gen-
eral enough to be safe, it is also rather
weak and worthless. If it is to be
valuable it must be exact, brand new
and authentic, but these very requisites
are in themselves handicaps.

The furnishings people themselves
seem to do an able job, as witnessed
by the advertising of Arrow shirts and
collars; Manhattan shirts; Stetson,
Dobbs, and other hats; Florsheim
shoes; Hickok, and a host of others.
If the clothing manufacturer could
work out an accessory campaign along
with his clothing, it would still seem

ny beside the accessory advertising

the accessory manufacturers.

The closest approach to a construc.
tive job linking accessories with cloth-
ing and binding up the whole thing
with the consumer's personal interests,
was the ensemble idea which clothing
manufacturers pushed a few years ago,
promoting harmony of color in a man’s
clothes and accessories, as well as his
personal coloring. This also includes
a link-up of appropriate taste in all
parts of a man’s wardrobe, such as the
tie-up of brogues and tweeds, derbys
and Chesterfield overcoats, et cetera.

Before tackling accessories, manu-
facturers would probably do better if
they could break down a few of the
old traditions that interfere with in-
creasing the number of well dressed
men. Too many men feel shy about
taking an interest in being well
groomed, and some mysterious false
modesty keeps them from paying
enough attention to the selection of
good looking, harmonious clothes and
accessories.

Ignorance or Disinterest?

Today part of a man’s poise, person-
ality, ease of mind and masculinity are
all directly related to his clothes. The
tough guy of the turtle-neck sweater
days fae to typify the he-man and
consideration of one’s clothes was con-
sidered effeminate, but today the clean
cut, masculine type is more often a
capable executive who is not only ath-
letic but also well dressed. The wrist
watch was considered effeminate once,
too, but the war changed all that, for
it is now regarded as rather indispen-
sable by the best dressed men. Maybe
we need another war to help out the
men’s clothing situation.

Conscious or unconscious disinterest
by men in regard to their clothes is
also coupled with an amazing igno-
rance about obvious fundamentals of
dress. It occurs to very few men that
stripes make you look thinner, that tan
usually makes a dark man look swarthy
and sallow, that it doesn’t make sense
to wear a straw hat with a topcoat on
a cool Spring evening. Possibly one
of the answers to the clothing indus-
try’s problem will be found by an
approach through the women, who
have more inherent taste than most
men can cultivate in a lifetime. Maybe
you have the answer, but in the mean-
time I think that my friend, Hovey,
hasn’t got the solution.

SALES

MANAGEMENT

sing

oth.
ing
‘sts

Snapshots

Sales conventions may be seething
with interest to executives and em-
ployes, but the general public is not
only unaware of them, it doesn’t give
a whoop. INTERNATIONAL BUSINESS
MACHINES determined to remedy this
situation. While its International
Goodwill Convention was in progress
in New York, half-page ads in 11
dailies told outsiders how 7,700 IBM
men in 79 countries were “trained to
consider themselves ambassadors of
international trade and goodwill. . . .
Which stimulates peace and friend-
ship regardless of national barriers.”
Other ads hammered so loudly along
the same line that all New York
knew that IBM was in conclave ‘for
the exchange of ideas, ideals, informa-
tion and the cementing of foreign
friendship.”

CHESTER BowLeEs, of Benton &
Bowles, the advertising agency which
has many radio hits under its direc-
tion, the most prominent being the
Maxwell House Showboat, says: “The
ideal radio entertainment is a com-
bination of good music and good
script. Singers who go on the radio
‘straight’. (that is, with a simple pres-
entation of numbers) have never
secured the big audiences that have
become followers of programs which
have contained human interest and
heart throbs.

“In the movie, ‘One Night of Love,’
Grace Moore sang selections from
‘Madam Butterfly,’ ‘Aida’ and ‘Car-
men.’ If she had sung those same
selections as straight concert numbers
she could not have hoped to stir the
audience as she stirred them when she
sang each number with the intense
a setting which the story gave
er.

WaDHAMS O1L CoMPANY cut loose
with a paean of praise when the Auto
Show was held in Milwaukee. “To
you Walter Chryster, and to you Henry
Ford—to you Charles Nash and to
you Alfred Sloan—to you and all like
you, down to the smallest dealer who
gallantly battles under your jubilant
banners . . . on your collective chest
we would like to pin the mightiest
medal the world has ever seen.

“In the long weary history of
America’s fight against paralyzing,
soul-starving depression, yours are the
pages that blaze with optimism. . . .
When by all the rules you should have
retreated, you charged—and charged
again. You had to sell those

cars! The only way you could sell
them was to make them better! better!

better! So in America’s four
blackest years you crowded a genera-
tion of normal development. . .
Your recognition is here, in good old
American fashion millions are buying
cars again.” Nary a word of this
tribute was marred by sales talk about
Wadhams oil. Only the signature
slug and a minute copyright line told
readers who it was that “speaking for
our own Wisconsin,” took ‘‘off our
hats” to the auto makers.

Some liquor companies may be
drawing in their advertising horns,
but not SEAGRAM. The company has
started a campaign in 200 newspapers
in 165 cities, 30 more than last Fall.
Fourteen magazines also are sched-
uled. Blackman Company is the
agency.

McCALL’s magazine investigators
asked 1,017 housewives at home-mak-
ing lecture classes in New Jersey what
electric appliances they considered
most essential. The matrons picked
the flatiron, home radio, floor-type
vacuum Cleaner, refrigerator and wash-
ing machine in that order. These
same women own 8,882 electric ap-
pliances, or an average of 8.73 each.
Only 214% are not in use, mostly
“out of repair.”

H. LEDYARD TOWLE becomes direc-
tor of creative design for the Pitts-
burgh Plate Glass Company. Captain
Towle, art director of the Campbell-
Ewald agency, recently won both first
and third prizes for his posters at the
National Exhibit of Outdoor Adver-
tising Art. In his long career he has
painted portraits which hang in nu-
merous museums, painted murals, and
designed almost everything from port-
able typewriters to tires.

NATIONAL Biscuir and WESTERN
UNION team up to get the utmost
publicity from the former’s three-hour
radio program on the NBC network
Saturday nights. Both companies are |
distributing 15,000 window posters |
saying, ““By Western Union the whole |
world applauds! Let’s Dance! .
Have a party. Wire your invitations.
Wire your favorite radio performers.” |
Pictured are French, Japanese, Canadian |
and American ships, their captains and |
the W. U. radiograms which the lat- |
ter sent complimenting the dance |
music. Similar exploitation tie-ups |
are being prepared by National Broad- |
casting for other radio clients.

J. W. DINEEN has been appointed |
director of the advertising section of |
General Motors, to succeed W. W. |
Lewis, who is now vice-president and |
general manager of Campbell-Ewald, |
Detroit.

&€ Good editing...fires the imagina-
tion of the reader—kindles his de-
sire to do—to be—and to have.99

that’s why
THE

merican

MAGAZINE

e@eeproduced inquiries for
Great Northern Railway at a
lower cost than any other gen-
eral magazine or any woman’s
magazine.

Y ¥¥s%
eee led the general magazine
field in low cost per inquiry
for a Gerber Strained Vege-
tables advertisement, 1934.

* eS
@ ee consistently leads or ranks
second among 11 magazines
in number of inquiries returned
to Investors’ Syndicate.

ey oe
@ ee was one of three leading
inquiry producers for Santa Fe
Railroad, 1934, on list of more
than 30 magazines.

a ee
eeetied for second place
among 16 magazines in low
cost per sale in Gillette’s 1934
fall campaign

Goodwin Sets Forth to Conquer
12,000,000 “Anchored Market”’

(Continued from page 123)

activities and would provide a sounder
method of sales stimulation.

“The fact that we reached our goal
of 250,000 ‘oral broadcasters’ within
six months, and that 15,000 women
have since applied, vindicated my be-
lief in the ‘organization’ possibility of
such a medium. And the approval of
nearly 19,000 ministers, priests and
rabbis, economists, publicists and de-
nomination leaders, as well as the
adoption of the plan by so many out-
standing manufacturers, I think, attest
to the soundness of the principles I
sought to weave into this instrument.”

Though the first quota of broad-
casters was reached on March 5, 1934,
Mr. Goodwin told SM, the signing of
manufacturers had proceeded more
gradually. This has been largely due
to several factors of ‘‘exclusiveness.”
Only one product in each category is
accepted . one brand of toilet
soap and one of shaving cream, one of
baking powder and one of corn flakes,
one electric vacuum cleaner and one
brand of paint. And so on.

Each product must be one which is
or can be generally distributed. It
must be sold through regular retail
outlets. Neither the list of products
nor the national ‘‘Goodwin’’ market
is split to meet the wishes of the
workers engaged from any denomina-
tion or the wishes of any manufac-
turer. Thus certain products, not
approved by certain L smeared
are barred. Among these are tobacco,
alcoholic beverages and germicides
which might be used for contraceptive
purposes.

Issue Shopping Guides

Manufacturers who signed for the
Goodwin Plan months back have had
to wait until now, when the plan is
ready to be launched, to determine the
full sales effectiveness of the plan as
a sales medium for their business.
Evidences of sale that may have been
saved from purchases of products, an-
nounced already to the field, have not
as yet been called in by the Goodwin
Corporation. In fact, no formal list-
ing of manufacturers or products has
yet been made. The plan actually
starts with the issuance of the 3,000,-
000 shopping guides.

But earlier manufacturers in the
plan have reported unusual results in
regional tests, simply as an outgrowth
of the person-to-person verbal adver-

[152]

tising of products announced to field
executives only.

Adolph Goodwin was formerly an
advertising agency plan creator. In
the first six months of that barren
year 1932 he sold nine national ac-
counts. One of these was the Allen-
A Company, maker of hosiery and
swim suits. He felt that the advertis-
ing he created for this company meas-
ured up to expectations in stimulating
consumer interest, but was relatively
a failure in building distribution and
in thwarting “brand-switching.” With
the help of the Goodwin broadcasters
and representatives, however, Herman
Apr Allen-A sales manager, report-
ed 500 new dealer outlets within six
weeks after Allen-A was announced
to Goodwin field executives.

Results Already Apparent

Several months ago a handbill list
of manufacturers who had signed for
the plan in a previous group meeting
was released to district managers. The
district manager in Denver, with the
handbill, approached an executive of
a large department store which had
consistently ignored the existence of
the salesman of one of the Goodwin
Plan manufacturers. The district
manager mentioned that the organiza-
tion then had 3,500 broadcasters in
Denver, representing a potential mar-
ket of 35,000 families. The executive
was skeptical. He asked her, casually,
to have 100 of them drop in to see
him in the next few weeks. It is re-
ported that in the next 48 hours 1,000
trooped in and introduced themselves.
The store decided to add this product.

A certain canned food product
was represented in Cincinnati by a
broker. Until the Goodwin Plan
came along, said the vice-president of
this company, it was just one of a lot
of like products on the broker's list.
He had followed the line of least re-
sistance, selling it to some independ-
ent stores. A certain chain of 5,000
grocery stores with headquarters in
Cincinnati operates many stores there.
But in two years the broker had not
been able to sell that chain a dollar's
worth of this product. The Cincin-
nati district manager distributed the
preliminary leaflet list to 35,000 broad-
casters and housewives. Many of
them had never heard of this product.
But it was on the list, so they decided
to try it. They went to the stores of

this chain, and to other stores. Ip
two days the chain store buyer placed

his initial order. Im three weeks the
product was on sale in a majority of
the grocery stores in Cincinnati.

Carl Weeks, president of the
Armand Company, cosmetics, was the
first manufacturer to sign up for the
Goodwin Plan. He said recently:

“So far as I know, this is the only
merchandising experiment which has
proposed to substitute results for
guesswork. . . . We have been im-
pressed with the results obtained from
it in an experimental way. . . . Fur-
thermore, not waiting until the plan
got in operation, we effected a modi-
fication of its principles at about four
times what the cost will be when the
plan gets into active operation, and
the results have been remarkable.”

Some of the manufacturers, Mr.
Goodwin told SM, have wanted to
employ the district managers, repre-
sentatives and broadcasters on exclusive
programs to increase their sales and
distribution. One sought to offer
8% commission on all sales made
through them. Another wanted to
organize a sales contest, with valuable
prizes, among them. These requests
were rejected. A fountain pen manu-
facturer was willing to “take space”’ in
the illustrated shopping guide if it
would reach all his prospects before
Christmas. Mr. Goodwin told him
that the plan is a year-round sales pro-
motion organization and not a printed
advertising medium, and that space in
the guide cannot be bought separately.

Retailers Excited, Too

Manufacturers have noted consider-
able interest in the Goodwin Plan on
the part of retailers. Leading depart-
ment stores—those staunchest advo-
cates of private brands!—recently have
agreed to stock all the Goodwin prod-
ucts. Some merchants have even
gone so far as to request that they
be appointed exclusive “Goodwin
Plan dealers’ in their communities.
Others have offered to establish stores
carrying only Goodwin products.
These proposals were rejected, Mr.
Goodwin said. The plan will play no
favorites among outlets.

The Goodwin Corporation has sent
to 150,000 stores a window sticker
which says: ‘We sell products listed
under the Goodwin Plan.” The dis-
trict managers and representatives, it
is explained, are getting them displayed
in stores of all types. Thousands
more are scheduled to be placed in
windows with the issuance of the
shopping guide. Simple displays
showing only Goodwin products al-
ready have been used by many stores.
In certain cases, it was said, these re-

SALES MANAGEMENT

.--alert to translate increased sales opportunities into increased sales

..- and More in Progressive Farmer
Than in 3 Other Papers Combined!

FARMER

N
co
Oo
co
N
ms
a

Lid
=
a
y,
Ly
‘e4
U
O
(a4
aw

3 OTHER PAPERS COMBINED $670 346

ADVERTISERS INVESTED $1,400,000 IN 4
SOUTHERN FARM PAPERS DURING 1934

COMMERCIAL LINAGE AND *REVENUE

_1934 Gain Over

Gain Over

Linage 1933 Revenue 1933

PROGRESSIVE FARMER

(At All Edition Rate) .. 130,450 57,062 $572,090 $245,131

Second Southwide

eS ee 113,298 41,445 $404,718 $149,432
PROGRESSIVE

FARMER LEAD ...... 17,152 15,617 $167,372 $ 95,699
PROGRESSIVE

FARMER TOTAL ..... 161,995 68,136 $728,982 $299,942
Second Southwide

Pe DO becsecsvcns 113,298 41,445 $404,718 $149,432
PROGRESSIVE

FARMER LEAD ...... 48,697 26,691 $324,264 $150,510

* All Color Premiums Included.
+ Average of 5 Editions.

Commercial Percentage
Advertising of Four-
Revenue Year Paper
PROGRESSIVE
FARMER ...... $728,982 52.1%
Second Southwide
Farm Paper ..... $404,718 28.9%
Third Farm Paper . $167,735 12.0%
Fourth Farm Paper . $ 97,893 7.0%
Total 3 Other
PED sbnctacs $670,346 47.9%
GRAND TOTAL ..$1,399,328 100.0%
(Source: Special Reports of Advertising Record Company)

L

PROGRESSIVE

BIRMINGHAM
250 Park Ave., New York

THE SOUTH’S

RALEIGH

LEADING

Edward 8S. Townsend, San Francisco

FARM —AND—HOME

1934 OVER 1933

L

PROGRESSIVE FARMER’ LED ma
FARM PAPERS EXCEPT ONE IN COM.
MERCIAL ADVERTISING GAINED,

——— |

And Progressive Farmer Leads Its Separate

Edition Contemporaries!

Commercial

Linage, 1934
TE indy baie tien woaees 155,414
Second Texas. Paper 206.0000. 144,528
TEXAS EDITION LEAD ... 10,886
Carolinas-Virginia Edition ...... 176,359
Second Paper in Territory ...... 77,995

CAROLINAS-VIRGINIA

RE niesessuceeeuenayins 98,364

FAR M

MEMPHIS

Gain
Over 1933

59,887
43,826
16,071
75,251
35,491

39,760

ER

DALLAS

Daily News Bldg., Chicago

MAGAZINE

FEBRUARY 1, 1935

[153}

EESEZN new Ford is here! » Front Pa ge News - New Ford is here: E2SL2)

FORD TO MAKE MILLION 1935 FORD V-8 CARS!

Ford Has New Safety-New Type Fin-

EW IZ SPRUNGBASE | _ Cooled Brakes—Roomier All-Steel Body-

—+ PRICES ARE LOWER SEE YOUR NEAREST FORD DEALER!

Balanced Weight -Safety-Glass in
All Windows at No Extra Cost

This is one of four car cards appearing simultaneously in the street care of Chicago,
Kansas City, Milwaukee and a dozen other selected key markets. They are unique in
that they are designed to keep alive the original Ford announcement advertisements
which appeared in newspapers the day before the cards were placed in the cars. The
Ford dealers believe that if they can keep their newspaper headlines before everybody,
every day, they will have a distinct advantage over competitors and they are capitaliz-
ing on the fact that in nearly every key market 80% of all transportation is on the
public conveyance systems, By this method Ford is adding incessant repetition to a
dominant newspaper announcement and expects to triple and quadruple the pulling

power of their original newspaper pages.

placed expensive displays for other
products. Merchants have used news-
paper space—some of them full pages
—to tell their customers that they
carry “Goodwin Plan listed products.”

The plan includes in its recom-
mendations that a manufacturer spend
3% of his wholesale sales, as proved
by the evidences which the Goodwin
Corporation turns in, in newspapers of
that particular area. Mr. Goodwin
believes that the plan will work to
increase the volume of newspaper ad-
vertising.

The response which, even during
the preliminary period, manufacturers
and retailers have had is largely due
to the efforts and knowledge of mer-
chandising and of local conditions of
the district managers and representa-
tives. These men and women, Mr.
Goodwin showed, have invested much
time and a total estimated at $1,500,-
000 of their own money—without any
return as yet—in arranging for utmost
local cooperation in the plan. As soon
as the shopping guide appears, they
will devote all their time to this work.

Of the 1,275 district managers and
representatives, he explained, nearly
all have had merchandising experience.
Forty-seven per cent have been sales
executives; 36% advertising execu-
tives. Eight per cent have been bank-
ers. The remaining 9% have been
engaged in a variety of work, from
housekeeping to industrial engineering.
One per cent have had ministerial ex-
perience. Average past earnings of
district managers in rural localities
have been about $3,000; of those in
urban localities, about $4,800. Their
average age is 40. Eighty-five per
cent are married. At present 82% are
men. As the plan develops, it is in-
tended that the number of men man-
agers be increased to about 95%,
as it is felt that they are better fitted
to cope with the merchandising prob-
lems involved, and to work with re-

[154]

tailers, wholesalers, newspapers and
other local factors in their solution.

Some of the district managers are
well known in sales work. Raymond
Coutant, at New York, for example,
is a former executive with the Olds
division of General Motors. (He was
also secretary of the ‘‘special manu-
facturers group” who sponsored the
New York meetings.) W. I. Wool-
pert, Dayton, is a sales engineer. John
G. Ross, Cleveland, has had 18 years
of merchandising and sales executive
experience. Like most other district
managers, he has signed broadcaster
groups from 75% of the church so-
cieties in his locality. Ruth Hayes
Carpenter, at Minneapolis, the original
“Betty Crocker” of General Mills, also
has reached this “quota.”

At the meeting of January 14, new
and old manufacturer “category hold-
ers” told the manufacturer prospects
of their experiences and ideas. Each
of them previously had written to cer-
tain prospects about it. The “mutual-
ity” of the plan is emphasized in the
fact that these executives have gone
to some trouble to explain it to ex-
ecutives in other industries.

For example, Norman H. Rieser,
president of the Rieser a
maker of Venida beauty products,
wrote to one of them:

“We are doing radio broadcasting,
but we believe that old-fashioned word
of mouth broadcasting, as controlled
and directed through the Goodwin
Plan, will soon take a basic place in
recognized advertising schedules. Mr.
Goodwin has harnessed the tremen-
dous energy of 265,000 neighborhood
women to foster the idea.”

Mr. Reiser pointed out that, though
some advertising agencies “have been
discrediting the plan,’ because they
feared it would reduce their compensa-
tion, “our agency feels that when the
‘oe is in full operation there will

enough promotion work for which

they will be paid to offset any imme.
diate losses they might sustain while
the manufacturer is in the process of
changing some of his present sales
promotion methods to the newer
Goodwin Plan.”

A. Derby Lawrence, assistant treas-
urer of the Joseph Burnett Company,
wrote: ‘You undoubtedly understand
how this plan operates and the fact
that expenditures are made only on
proof of sales, which are made only
through established store channels,
makes it unique over all other adver-
tising projects which have been sub-
mitted to us.”

And F. B. Shields, treasurer of the
Barbasol Company, pointed out that
“the interesting thing about this plan
is that the cost is governed by actual
sales over the retailer's counter.”

Though Mr. Goodwin and his vice-
president, George Whiteside, told SM
that they believe the plan will double
the sales of a number of the manu-
facturer participants in the first six
months, they would make no rash pre-
dictions.

It is reasonable to assume, however,
they said, that the average family
should buy about $5 of merchandise
weekly from the long Goodwin list.
If nearly 3,000,000 families are cov-
ered, that would mean an aggregate
retail sales volume of about $700,000,-
000 in the first year.

A giant may have been born in the
ballroom of the Plaza on January 14.

A.M.A. Package Awards

in Two Groups This Year

Two sets of awards for good pack-
aging will be made this month in New
York by the American Management
Association instead of merely the Irwin
D. Wolf trophy and list of honorable
mentions conferred in previous years.
The Wolf award goes to the best
package of all classes and certificates
designed by Gilbert Farrar will be
given to the best in the following
classes: Containers of metal, glass,
wood and molded plastics, tubes,
visible display packages, paper bags,
set-up boxes, folding cartons, canisters,
family of packages, display containers,
packages displaying merchandising in-
genuity, shipping containers and mis-
cellaneous.

A different set of “awards for dis-
tinctive merit’’ recognizing technical
developments in packaging will also
be made.

Winners in all classes will be dis-
played in the Association’s fifth annual
packaging exposition at the Palmer
House, Chicago, March 5 to 8. Ex-
hibitors will be 50% more numerous
than last year.

SALES MANAGEMENT

\\

Now in Progress!

= | AMERICA’S FIRST BATHROOM and

? | DRESSING TABLE INVENTORY

‘ of Drug, Sundry and Cosmetic Products

Photo Courtesy of ‘Advertising & Selling’

More than 200 manufacturers of Drugs, Sundries and
Cosmetics have contributed advice in the preparation of
the questionnaire and survey procedure. Pictured here
is a council meeting of important agency research direc-
tors in Hotel Waldorf. Astoria, December 12, 1934. Among
those in attendance were: Victor Pelz and R. H. Leding
of Lord & Thomas; H. L. Douglas, Erwin, Wasey & Co.;
F. C. Coutant, Pedlar & Ryan, Inc.; J. J. Flanagan, Geyer-
Cornell Co.; George Gallup and. George Sewall, Young
& Rubicam, Inc.; R, N. King, Batten, Barton, Durstine &
Osborn, Inc.; J. N. Wallace, N. W. Ayer & Son, Inc.;

Lyman C. Chalkley, Benton & Bowles, Inc.; F, S. New-
berry, Jr., Ruthrauff & Ryan, Inc.; L. D. H. Weld,

McCann-Erickson, Inc.; Herbert Steele,
Eastern Manager, National Advertising
Department, the Scripps-Howard News-
papers; Harry A. Casey, Promotion
Manager, the Scripps-Howard News-
papers; F. N. McGehee, National
gaat Manager, The Cleveland
"ress.

HIS month five thousand, four hundred Cleve-

land housewives are listing on a printed report
form, supplied by the Cleveland Parent-Teachers
Association, every proprietary medicine—every drug
sundry—every shaving accessory—toilet requisite—
dental aid—and every cosmetic product to be found
in their homes.

In addition, they are reporting for each item (1)
where they purchased it, (2) what they paid for it,
(3) who in the family uses it, and (4) whether their
doctor prescribed it.

This is the first comprehensive study of consumer
habit in the purchase of drug and cosmetic products
ever conducted in a metropolitan market.

The results are to be tabulated by the International
Business Machines Corporation and a report will be
ready for interested manufacturers and advertising
agents on or about March 15.

If you should like to see the completed report or a
description of the novel method through which the
data are being obtained, write the National Advertis-
ing Department.

The Cleveland Press

A Scripps - Howard Newspaper

NATIONAL ADVERTISING

DEPARTMENT OF

SCRIPPS-HOWARD
NEWSPAPERS

230 PARK AVENUE, WN. Y. C.

CHICAGO

SAN FRANCISCO LOS ANGELES

MEMBER OF THE UNITED

PRESS +--+ OF THE AUDIT

BUREAU OF CIRCULATIONS
and of

MEDIA RECORDS, INC.

DALLAS DETROIT

PHILADELPHIA ATLANTA

FEBRUARY 1, 1935

a Tn OR

[155]

COMPARISON OF RETAIL STORES BY TYPES OF OPERATION
(Sales are stated in thousands of dollars)
NUMBER OF STORES SALES
Type % ,
| Change : Change
1933 1929 1933 Ratio 1929 Ratio
=e —_annenee acumen ones,
| U. S. TOTALS. 1,526,119 1,543,158 — 1.1 $25,037,225 100 .0 $49,114,653 100 .0 —49.0
Independents.......... 1,349,337 1,375,509 — 2.0 $17,826,562 71.2 $38,081,504 77 5 —53.2
a 141,603 148,037 — 43 6,312,769 25.2 9,834,846 20 .0 —35 8
Direct selling....... itdcontunarid 7,026 1,661 +323 .0 187,368 Ps 93,961 a +99 ..4
can waennnd pias 311 271 + 15.0 244,381 1.0 515,237 1.0 —52.6
Ee tis a als daleaaw mee 2,719 1,347 +101 .0 95,578 4 115,583 3 —17.3
Utility-operated..................... 4,127 4,053 + 18 76,079 3 163,371 3 —53.4
| SE IR 6c onvéspncawoendacre 20,996 12,280 + 71.0 294,488 1.2 310,151 7 — 5.0
Market and Roadside stands........... 4,502 — _ 18,614 a _
itinerant vendors..................... Figures 1,384 _ Figures - 7,130 _ _
ER cd dae pitti beiinvests ne 244 — ‘ -- 3,971 _ _
Leased departments................. ; 4,271 - pes - 154,024 — ~
Cooperatives... ... 2... 00... cece eeee Available 1,709 — Available - 116,995 _ ae
| Gnatessllied........cccccccccccccese 170 -- — 9,4:7 _ ~ |
as es Lee _ I | |

Chains Gain Over Independents
During Depression Years

HE sales of chain stores in-

creased in relative importance to

other types of operation during

the four years from 1929 to
1933, according to figures gathered in
the Retail Distribution Census.

In 1929 chains did 20.0% of the
total of all retail business of the coun-
try, but by 1933 the ratio had in-
creased to 25.2%, or a quarter of the
total of national retail sales.

The most extraordinary changes are
shown in the number of establishments
of direct-selling (house-to-house) re-
tailers, although the volume is still
less than 6% of the total.

The higher ratio of chain sales as a
whole does not mean that the chains
in all kinds of business have weathered
the four years of depression better than
independents. The chains are relative-
ly strong in the food, variety, drug
stores and filling station classifications,
and these lines of low-priced consumer
commodities declined far less than
luxury and high-priced products.

In most of those kinds of business
which experienced the greatest decline
in sales, chains are a negligible factor.

The number of full-time employes
decreased 33.8% in independent
stores and 17.3% in chain stores. The
number of proprietors increased 3.0%
in independent stores and 1.7% in
those chains which are not incor-
porated.

Total payroll decreased 48.9% in
independent stores and 30.8% in
chains. The decrease in full-time pay-

[156]

roll was 52% in independents and
33.8% in chains. Both increased
their part-time payroll, the former by
44.5% and the latter by 69.9%.

In comparison with an average de-
crease in annual earnings per full-
time employe of 24.9% in all stores,
employes in independent stores had
their annual earnings reduced 27.5%
and in chain stores 19.8%.

In five kinds of business, chains in-
creased materially the ratio of their
sales to independents’ sales. The chain
ratios, or the percentage that chain
sales bear to total sales of all stores
in the same kind of business, are as
follows:

Chain Ratio, Chain Ratio,

Kind of Business 1933 1929
Department stores ..... 23.9 16.7
rrr 46.2 38.0
Combination stores (gro-

ceries and meats) ... 43.7 32.2
Cigar stores and stands 33.9 25.1
Se ED tics nwess 25.1 18.5

In the following kinds of business
the chain ratio increased slightly:

Chain Ratio, Chain Ratio,

Kind of Business 1933 1929
Variety stores ......... 91.2 89.2
DE SUE ccnccvcties 22.0 21.2
Women's apparel stores. 23.4 22.7
Restaurants and eating
Reena ead educa 14.9 13.6
Filling Stations ....... 35.5 33.8

In the following kinds of business
the chain ratio remained unchanged or

declined :
Chain Ratio, Chain Ratio,

Kind of Business 1933 1929
Family clothing stores... 20.3 27.3
Furniture stores ....... 14.2 14.2
Radio stores .......... 15.6 19.1
Grocery stores (with-

GEE GOED 6 cscevecee 45.0 45.7
Jewelry stores .......... 5.9 6.4

In the department store field the
1933 Census includes about 100 more
chain stores than in 1929. A few of
these are large stores opened by the
mail-order houses and other chains
which continued to expand after 1929;
the balance represents principally the
stores of a national chain classified in
1929 as a variety store chain, but which
has changed the nature of its business
during the intervening years until to-
day it is classified properly as a de-
partment store chain. Its sales in 1929
were approximately $66,000,000; in
1933, $78,000,000.

In comparison, the number of in-
dependent department stores decreased
from 2,166 to 1,428. A factor in this
decline is the minimum sales limit of
$100,000 which is required of a store
before it can be classified in the Cen-
sus as a department store.

The number of chain department
stores exceeds the number of inde-
pendent department stores, although
their sales are little more than one-
third of the sales of independents.
With the exception of a few sizable
stores of the mail-order houses, prac-
tically all of the large downtown de-
partment stores of the country are in-
dependently operated and are owned
locally except for 121 stores of the
ownership groups. Ownership groups
are financial mergers of previously ex-
isting independently owned _ stores,
without central merchandising and
buying. Mere ownership does not
classify them as chains so long as they
are independently operated and their
buying is not centralized. They are
classified the same way in 1933 as in
1929.

MANAGEMENT

SALES

The TOLEDO BLADE’S

Record for 1934

LOCAL ADVERTISING

2144 million lines More
(86%) than any Toledo
Newspaper.

CLASSIFIED
ADVERTISING

Half a million lines
More than any Toledo
Newspaper.

FOOD ADVERTISING

80% More than any
Toledo Newspaper.

NATIONAL
ADVERTISING

Over a _ million lines
More (143%) than any
Toledo Newspaper.

TOTAL
ADVERTISING

4 million lines More
(95%) than any Toledo

Newspaper.

ALCOHOLIC
BEVERAGES

167% More than any

Toledo Newspaper.

DISPLAY
ADVERTISING

34% million lines More
(98%) than any Toledo
Newspaper.

DEPARTMENT STORE
ADVERTISING

Over a _ million lines
More (91%) than any

Toledo Newspaper.

MEDICAL
ADVERTISING

130% More than any
Toledo Newspaper.

WOMEN’S WEAR
ADVERTISING

234% More than any
Toledo Newspaper.

AUTOMOBILES

106% More than any
Toledo Newspaper.

TOILET REQUISITES
ADVERTISING

300% More than any
Toledo Newspaper.

\\ E could go on with many more advertising classifications but
the above list is sufficient evidence that the TOLEDO BLADE
is the DOMINANT advertising medium in Toledo.

The TOLEDO BLADE sells more papers in Toledo than

there are homes and gives complete coverage at one cost.

TOLEDO BLADE

Paul Block and Associates
National Advertising Representatives

PHILADELPHIA
SAN FRANCISCO

NEW YORK CHICAGO

LOS ANGELES

BOSTON DETROIT

CINCINNATI

FEBRUARY 1, 1935

f157}

CCORDING to figures gathered
from reliable sources five ma-
jor forms of advertising
media—newspapers, magazines,

radio, national farm papers and busi-

ness papers—had a collective dollar

gain last year of slightly over 24%

in advertising revenue.

Dollar figures for each were ap-
proximately as follows:

Newspapers $490,000,000.

Magazines $113,514,672.

Radio networks $42,659,461.

Business papers $40,000,000.

National farm magazines $5,192,377.

Magazine and radio figures were
compiled by National Advertising

Records (see detailed breakdown be-

low), and cover all advertising in

the 77 leading magazines, general,
class and women’s, and the time cost

(not talent) on the NBC and CBS

networks. The newspaper figure is the

estimate of Editor and Publisher, and
the business paper figure, covering all
business papers, is the estimate of As-

Major Advertising Gained 24% in 34

sociated Business Papers, Inc. National
farm paper figures also come from
National Advertising Records.

In percentage gain in dollar revenue
radio led with 35.3%, followed by
national farm magazines, 28.1%;
business papers, 25%; magazines,
21.3%; and newspapers approximate-
ly 12.5%. Outdoor advertising was
up around 15% and sizable gains were
registered by state and sectional farm
papers, store and window displays, di-
rect-mail, and other forms of advertis-
ing for which dollar estimates are not
available.

In the 24 classifications of advertis-
ing given below for magazines and
radio, only ome, lubricants and
petroleum products, shows declines
for both forms of advertising. _Al-
though radio showed a greater percent-
age gain, and enjoyed its biggest year,
the medium lost ground in more classi-
fications than did magazines.

Industries which increased expendi-
tures by more than the general aver-
age in both magazines and radio were:

Automotive

Building materials
Machinery

Paints and hardware
Shoes and leather goods
Stationery and publishers
Wines, beer and liquors.

The alcoholic beverage industries
were particularly helpful to the maga-
zines, and accounted for more than
15% of the total dollar advertising
gains. The networks gained less be.
cause of their restrictions against liquor
advertising.

Industries in which the magazines
gained far more than radio were cigars,
cigarettes and tobacco, confectionery
and soft drinks, financial and insur-
ance, house furniture and furnishings,
jewelry and silverware, paints and
hardware, and miscellaneous.

Radio gained far more than maga-
zines in automotive, building materials,
drugs and toilet goods, foods and food
beverages, garden and field, shoes and
leather goods, soaps and housekeepers’
supplies, and stationery and publishers.

1934 Investments

CLASS

1—Automotive Industry ..................
2—Building Materials ..................
3—Cigars, Cigarettes and Tobacco.........
4—Clothing and Dry Goods ..............
5—Confectionery and Soft Drinks .........
6—Drugs and Toilet Goods ............
7—Financial and Insurance ...............
8—Foods and Food Beverages ............
9—Garden and Field ..................
10—House Furniture and Furnishings ......
11—Jewelry and Silverware ..............
12—Lubricants and Petroleum Products ....
13—Mach., Farm Equipment & Mech. Sup... .
14—Office Equipment .................4..
15—Paints and Hardware ............+..+
16—Radios, Phonographs and Musical Instruments ............
17—Schools and Correspondence Courses ...
18—Shoes and Leather Goods ............
19—Soaps and Housekeepers Supplies ......
20—Sporting Goods ..............-00008-
21—Stationery and Publishers ..............
22—Travel and Hotels ..............0002-
23—Wines, Beer and Liquors .............
PENOUD 6 cnc ann dakiwdecevewnsen

Note—The National Magazines checked total 77 publications, 11
weeklies and semi-monthies, and 66 monthlies. All figures are
based on the one-time or single insertion rate. tional Broadcasting Compan

in Magazines, Radio, by Industries

Compiled for SaLEs MANAGEMENT by the Advertising Record Company, Inc.

Magazines
1934
$12,881,574.........

$113,514,672........4.

System.
talent.

vp” eres
py ee
SEIS BTS desvves
rk S > ee
pi eee
re

pS A» SEES

2, eee

Radio Networks

Per Cent 1934 Per Cent
+ 36.7 $3,772,486......... + 62.6
+ 40.8 , | eo +158.1
+ 27.5 3,181,988......... + 9.3
+ 44.5 338,612......... — 164
+ 244 5 ee — 3.2
+ 6.5 13,982,287......... + 75.5
+ 20.6 Ty eee — 8.6
+ 44 11,747,601......... +- 23.8
+ 19.1 ee + 50.5
+ 43.9 417,065......... + 40
+ 71.8 eee + 7.3
— 2.2 2,958,799......... — 17.5
+ 69.0 |, + 38.1
+136.3 ee — 5
+ 50.7 a + 40.5
+ 10.9 656,090......... + 10.5
— 2 per eee

+ 44.3 39,660......... +353.2
— 26 7 3) + 93.6
+ 51.0 Nothing..........

+ 25.8 Ya +106.4
+ 29.1 ae — 31.8
+349.0 7

$42,659,461.........

Note—The Network Radio Broadcasting figures cover all national
or chain broadcasting carried over the networks of the Na-

and Columbia Broadcasting

The figures cover facilities only and do not include

SALES MANAGEMENT

‘VV = + A

CHILTON

Publications

The selective circulations of
Chilton Publications permit
you precisely to pick your
advertising shots.

Automatically eliminating waste, they group your customers where

they are easy and economical to reach . . where they are accus-

tomed to turn with buying in mind. . where they are easiest to sell.

Chilton Publications “flush” your prospects. You pick your shots.

®

CHILTON PUBLICATIONS

Blanket the Following Fields

Metals and Dry Goods and Exports Warehousing
Machinery Department Stores ical a

Hardware Shoes, Leather Toys and

Automotive and Hosiery Optical Bicycles

CHILTON COMPANY

(INCORPORATED)
Philadelphia — New York

Address CHILTON PUBLICATIONS as Follows:

Bee Iron Age Dry ae Economist > age Journal & Toy World & Bicycle World The Aesotees Automobile*
ardware Age irectories eview of Optometry : if. (Overseas Edition)
Dry Goods Economist The Jewelers’ Circular-Keystone Boot and Shoe Recorder 742 Market St., Sen Francisco, Calif

Distribution & Warehousing* El Automévil Americano*

2 Where-to-Buy in Chi
239 West 39th Street, New York City ee ee

300 W. Adams St. Ingenieria Internacional*
Automobile Trade Journal Automotive Industries ‘ iad
Commercial Car Jeuresl The Spectator Chilton Automotive Buyer's Guide Chicago, Il. El Farmacéutico*
Chestnut & 56th Sts., Philadelphia, Pa. *Associated Ownership 330 W. 42nd St., New York City

FEBRUARY 1, 1935 {159}

Washington Looks at
Food and Drugs, NRA, FTC
(Continued from page 131)

food and drug bill as an amendment
and so incorporated as a part and in-
tegral parcel of any measure to find its
way through both Houses and onto the
President’s desk. But that, of course,
is not definite and is not likely to be
until something is known about the
NRA. And when that? Ah, listen,
my children, and you shall hear!
Three suggestions have come for-
ward for the continuation of the NRA.
One of these has the approval of the
chairman of the National Industrial
Recovery Board, Mr. S. Clay Williams.

But the Board itself, and as such, has
not made a definite recommendation.
It seems possible that the other mem-
bers, in spite of the slight grating
sound caused by occasional bits of in-
ternal friction, will fall in line with
Mr. Williams for want of a better
path.

The plan receiving Mr. Williams’
support is simply this: To continue
the NRA for another year as it now
stands. Only that, and nothing more.
But that indicates many things. And
they can best be exemplified by the
recent hearings on price control fea-
tures in codes. It seems apparent to
the Administration that Business it-
self is undecided about what to do

“~
7 »

om

ThePlowed Field Pays.

Until editorial keenness in a magazine plows

through reader apathy, advertising pages

scatter the seed of business profits on hard

ground. Shrewd advertisers, recognizing edi-

torial leadership, made 1934 a banner year
for Mill & Factory. The plowed field pays!

MILL& FACTORY

A CONOVER-MAST PUBLICATION

205 E. 42nd St., New York City

[ 160}

333 N. Michigan Ave., Chicago

with the NRA. Some would like to
have this done, others that.

In the price hearings, suggestions
came swarming. Price fixing should
be scuttled. Price fixing should be
made more rigid. Price fixing should
be modified. Price fixing should be
made absolute. Every possible sug.
gestion had its own little coterie of
advocates thronging for its adoption,
The result will probably be a closer
supervision of the present price pol.
icies.

This, apparently, is what Mr.
Williams would wish for the whole
set-up of the NRA; a closer super.
vision of the present policies so that
at the second session of the present
Congress definite recommendations
might be made which would hold the
support of both business and Adminis.
tration in a harmonious whole.

At the present time neither business
nor the Administration can agree with
itself, even on just what should be
done with the NRA, let alone seeing
eye to spectacle with each other.

Another suggestion which has come
to the fore for prolongation of the
NRA is one to make an organization,
permanent in structure, which would
have control over maximum hours and
minimum wages and the prohibition
of child labor under simplified codes.
While this may come at the second
session of the present Congress, it does
not appear to the general Washington
opinion to be on the calendar for this
session.

Nor does the third proposal. This
would modify the existing law to some
degree and extend it for a longer
period of time, some two, three, or
four years.

FTC to Replace NRA?

What seems probable at this writing
is the preference of Mr. Williams.
But this, too, has some chance of eat-
ing crow. The nation’s coordinator,
Donald Richberg, has yet to give it his
approval. And, while this approval
does not appear to be unlikely, neither
is it certain. Mr. Richberg has been
going from department to department
asking for NRA ideas and getting
them. What he may concoct from the
mass of material given him is, of
course, open to speculation—as is
everything Mr. Richberg does. . But
there is nothing on the horizon so
far which would indicate that Mr.
Richberg looks with disfavor on Mr.
Williams’ suggestion.

Meanwhile, several Senators have
ideas. Mr. Borah, the golden voicé
from Idaho, and Mr. Wheeler, whose
Montana tongue has flayed copper in-
terests and warbled of silver in almost

SALES MANAGEMENT

In March — a

special issue devoted to

KITCHEN -/4PPEAL

The March issue of PREMIUM PRACTICE will analyze the
importance of premiums for the housewife, to lighten the duties in
her workshop—the Kitchen.

It will disclose that the Kitchen is the one room in the home common
to all women, irrespective of station in life—that the appeal of
Kitchen Aids reaches them all.

What women use in their Kitchens—articles that have won premium
victories—how they were “put over’—the types of sales problems
their use has solved—all these and added features will be discussed
in the trying light of actual experience.

Like the February issue, this one will be profusely illustrated, show-
ing the wealth of items that rank high in their appeal to housewives.

Watch for this MARCH issue of PREMIUM PRACTICE. It
will solve your sales problems if you are trying to reach the Ameri-
can housewife. Side by side you will see the articles that win the
housewife’s patronage and the ways these articles are used in actual
premium practice. It will be a text book on this important phase
of premium use. It should be a part of your permanent sales pro-
motion files.

Reserve your copy NOW —-30 cents each.

PREMIUM PRACTICE

(Founded 1905 as Novelty News)
420 Lexington Avenue New York, N. Y.

FEBRUARY 1,

1935

Sales Management’s Sectional Index of General Business
(By Geographical Census Divisions. Monthly Average 1923-25 = 100)

BY RAY B. PRESCOTT

(The state of business expressed in terms of percentage approach toward the “normal” aver-
age of the years 1923-1925. The horizontal bar represents normal.
tricts follows the standard breakdown used by the Bureau of Census. The index numbers used,
as determined by Ray B. Prescott, are a weighted composite of bank debits and retail sales.)

UNITED STATES: The country as a whole finished the year 11.6% ahead of December, ’33.

November, ’34.

the same.

UNITED STATES

Four sections made small gains duri
The East South Central registered an 8.0% drop from November but still remained 11.0% ahead of December of a year ago.

NEW ENGLAND EAST NO.CENTRAL WEST NO.CENTRAL

December while three showed small

MID ATLANTIC

The designation of dis-

It also showed a small gain of 2.7% over
declines. The South Atlantic remained

100
¢ i———— ° 4 —_—_— 72%
or 11% 13% br 70% 68% oo 72% 6l% 10% 72% f 6% 65%
Uj YY Y /, YY L
40 7 y
2 YY, Y YY Y
4 UY L, UU
me MOLSPE] Pg NOL DE] RG Mi Oe) Pas MODE] ¥en

December shows an

December shows a

December shows an

December shows an

11.5% gain over De- 9.0% gain over De- 11.8% gain over De- 11.2% gain over De-
(See . a eens cember, 33, and a 3% cember, 33, and a 3% cember, ’33, and a 3% cember, 33, and a
; drop from November, gain over November, gain over November, slight decline from

34, "34, °34., November, ’3.

50. ATLANTIC

EAST SO.CENTRAL

WEST SO.CENTRAL

MOUNTAIN

PACIFIC

j00
82% 827%
80 70% 10% 68% ay | oe, 3%
60F 5 « Yj
olf Y, ] Y;
20 Y UY Uy, Uy
Dee NDS ec PES NPL ECL PES PG eT NPE Dee] Pec NOY DEE
December shows a December shows an December shows an December shows a December shows an
36.7% gain over —~ a oe or ar ae ome —- = pant oe ae. pont a we
re oreney tome , &~ ‘on dro hen ‘~ 3% po, "rem one ST. Ae Oe Soo Ke. No-
ber, ’34, vember, ’34. vember, ’34, vember, ’34. vember, ’34.

the same breath, have both introduced
measures which would, in effect and
if passed, quite completely nullify the
NRA.

The Borah Bill (S. 579) provides
for the licensing by the Federal Trade
Commission of corporations engaged
in interstate or foreign commerce. It
requires annual reports to the Commis-
sion by each corporation licensed, and
the Commission is authorized to pro-
vide examinations. It may make in-
vestigations, cause injunctions to be is-
sued, and prosecute offenses in viola-
tion to its orders. Yet the licensee is
also protected, for he has the right of
a court review of the orders promul-
gated by the Commission.

The Wheeler Bill (S. 944), is in
16 lines only, in contrast to the 332
necessary to state the provisions of the

[162]

Borah measure, and amends the Fed-
eral Trade Commission Act by stating
simply: “The Commission is em-
powered and directed to prevent per-
sons, partnerships or corporations,
except banks and common carriers sub-
ject to the Acts to regulate commerce,
from using unfair methods of com-
petition in or affecting commerce and
unfair or deceptive acts and practices
in or affecting commerce.”

There is a possibility that one of
these measures might—in a despera-
tion similar to that which saw the
passage of the Labor Relations Board
Resolution during the closing hours of
the last Congress—find itself elevated
to the heights of a public law. If so,
it would chant a clarion call of hail
and farewell to the National Industrial
Recovery Act (“NRA was the greatest

social and economic experiment of our
age,” General Hugh S. Johnson) and
so intone its last litany. Amens, both
sorrowful and relieved.

Other proposals are being bruited
for the FTC. Among these is a sug-
gestion to extend the powers of the
commission to include that of pre-
interpretation.

At the present time the Commission
has power to say that a thing is wrong
only after it has been done. The new
proposal would enable it to pass judg-
ment on a matter not yet executed and
so save not only itself a lot of trouble
with hearings and investigations, but
also the private business man the ex-
penses of carrying out a new idea only
to find that the Commission considers
it subversive to fair business competi-
tion.

SALES MANAGEMENT

Bats =:

Rise

SM Finds Hotpoint’s
New Show Hot Stuff
(Continued from page 135)

“Calrod Can Take It.” Films show
how the Calrod heating unit is manu-
factured and tested. Mr. Sharp used
Calrod and open units in his tests.
He heated Calrod, immersed it in cold
water, heated it again, cooled it again,
bent, twisted and hammered it, and it
still worked.

Clint Brown, one of the promotion-
advertising men, came in dressed like
an undertaker. Clint, whom your
author has known since he was a pup,
chose as his subject, “Dead Men
Smell No Sales.’ He laid it on pret-

ty hearty. There’s a kick in seeing a
grown-up copy cub razz deceased
salesmen.

W. A. Grove, advertising manager,
then swung into action. His stuff was
labeled, “We Tell "Em—You Sell
'Em.” Remember, you tipped me off
you'd known Grove for yars and yars
and you called him “Art” and he
called you “Ray.”

Well, I thought maybe I could
sorta get to him so I diplomatically
(I'm strong on diplomatics) men-
tioned to him you'd said some nice
things about him and the old days.

“Just mice things?” he asked.
“Then I'll stick to nice things, too.”

I wonder what he meant.

A Family in Hot Water

Miss Jeanne Crouse appeared as a
lady having trouble with her old
range. Then she saw something
about the new electric range in a
magazine. Then she saw a billboard
(riding downtown on a bus) telling
about the electric range. She drama-
tized this with a bus seat on the stage.
Then she picked up a newspaper and
read an advertisement about an elec-
tric range. Then she saw an electric
range display in a window. Then she
went in to see the range.

A salesman wheedled her name and
address out of her. (I didn’t blame
him a bit.) Next he called on her.
(I'd lave done it, too, gimme the
chance.) But he was after the sale
and he got it.

After that there is a little riot of
fun entitled, ‘Parlor, Bedroom, Bath
and Basement.” It has to do with a
family and its troubles over hot water.

All through the show, between
stunts, the voice of’ Harlow Wilcox,
popular radio announcer, is heard as
“The Voice of Calrod.” The show is
so arranged that, with the help of the
canned pictures, the canned voice and
the canned music, three people can
take it out on the road.

FEBRUARY 1, 1935

Local utilities executives, of course,
help a bit, but their parts are all
worked out, too. An_ electrically
cooked luncheon is served at noon and
in mid-afternoon, about the time for
the seventh-inning stretch, “tea” is
served. The tea was coffee, fruit juices
and very tasty cookies.

The eleven duplicate shows are now
going out on the road. They'll be
busy at various sales centers until
April. It’s just about the sellingest
plan your news scout ever did see.

This Hotpoint outfit is opening up
one of its plants, closed for the last
two or three years. They're going back
into the national magazines with a
good, stiff advertismg campaign.

Hotpoint electric cooking advertis-
ing has been absent since 1932. Its re-

turn indicates faith in 1935 business.

Hotpoint is using ‘‘everything” this
year in sales promotion. Magazines,
trade papers, billboards, windows, and
for salesmen a very elaborate “tool
kit.” Direct-mail is a feature.
Photographs of local installations, and
local testimonials, are employed in the
kits.

If you want the whole story write
your friend ‘‘Art” for the script. But
if you got it you couldn’t print the
motion pictures anyway. If you want
to get the whole of the low down on
it the only way I can figure out is
for you to sit in on the show in some
of the 300 spots where it’s coming.

It’s a pippin for anyone who wants
to learn how to sell.

Sincerely, LEs.

A LARGE, EFFICIENT AND

Because of up-to-date
equipment and best
workmen

under any obligation whatever.

| Telephone Wabash 3380
All Departments

Luther C. Rogers, Chairman
i Board Directors
| A.R. Schulz, President and
] General Manager

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and Treasurer

os

[163]

“March of Time”

Let Time’s Publisher Luce protest that
“The March of Time,” which appears na-
tionally in film form today, is not promotion
for Time magazine. Let President Lar-
sen of the March of Time, Inc., erstwhile
circulation chief of Time magazine, point
out that the 20-minute picture is being sold
to exhibitors (at a nice figure) on its own
entertainment value; that unless it pays
for itself, it will be discontinued. The
weekly newsreel remains “promotion” for
Time. The form and reportorial approach
being what they are, even if the name were
something else, Time would still reap bene-
fit from it.

Roy E. Larsen

Exclusive franchises for showing the pic-
ture have been signed with several hundred
theatres. How many hundred is not pre-
cisely known. On the single day before this
was written 175 were signed. The potent
Loew group was the first in the fold.

In eleven years circulation of Time has
grown from 25,000 to 500,000. Publisher
Luce estimates total readership, as a result
of exhaustive surveys, at 1,548,500. In five
years circulation of Fortune has grown to
100,000 with total readership figured at
1,000,000. In a bit more than five years,
“The March of Time” on the air is said to
have won a group of 32,670,000 listeners.

If Time fails to add a million more read-
ers, in time, from “The March of Time’ on
the screen, and a bit more prestige and ad-
vertising volume, Larsen himself will be
surprised.

John S. Martin, managing editor of Time,
is vice-president and editor of The March
of Time, Inc. Larsen and Martin were
among the original group of five young men
who gave birth to a 32-page news maga-
zine on March 3, 1923. Briton Hadden and
Henry R. Luce were co-publishers. (They
alternated as editor and manager, each year
up to Hadden’s death, in 1929.) Larsen
handled circulation; Robert L. Johnson, ad-

{164}

vertising. (Johnson is now on leave of
absence, as relief administrator in Penn-
sylvania.) Martin was the magazine's first
writer.

The radio (now sponsored by Remington
Rand, Inc.), and movie children may have
outgrown the parent in number of people
attracted weekly, but the parent is doing
pretty well on its own.

The picture is being promoted in a na-
tion-wide newspaper campaign, through Bat-
ten, Barton, Durstine & Osborn, who have
produced the radio “March of Time.”
Theatres have been given detailed instruc-
tions on how to build up the premiere.
Newspaper advertising starting with teas-
ers, ten days in advance; the showing of a
trailer; direct-mail announcements have been
suggested and provided. Branch offices of
Remington Rand are cooperating. Western
Union (whose boys delivered a lot of ‘‘first
copies” of Time as a result of listener re-
sponse to the broadcasts) is running a dis-
play about “The March of Time” in thou-
sands of its offices.

Ewald in Washington

Henry T. Ewald has decided, presumably
because of the commercial influence of the
New Deal, that Campbell-Ewald Company
should have an office in Washington. His
agency has opened one there, in the Trans-
portation Building. Robert C. Diserens,
vice-president, will be in charge.

The Campbell-Ewald action in this di-
rection brings this agency to attention for
the second or third time in a month. The
first two times, both due to the same point
of view, were the establishment of largely
autonomous agencies to replace branches
in New York and Toronto.

The opening in Washington makes Camp-
bell-Ewald the first of the large national
agencies to have an office there. (It is an
office and not an agency.) It also gives
Campbell-Ewald direct representation in a
seventh United States city. N. Wi Ayer
& Son, Batten, Barton, Durstine & Osborn,
Erwin, Wasey & Company, and J. Walter
Thompson Company, for example, each
have offices in six cities. Lord & Thomas
is in four; McCann-Erickson, Inc., in nine.

Perhaps others will be opening soon in
the city which Mr. Ewald describes as “a
pulsing, motivating center of influence,
vastly important to the industry, finance and
commerce of the country.”

Honored by Branham

Mike Hughes, in his New York Sun
column, reviews the twentieth edition of
the “telephone chart’ issued each year by
the Branham Company, publishers’ repre-
sentatives. The chart gives names, ad-
dresses and telephone numbers of agencies,
publications, representatives, and the like.
He points out that for some obscure reason
SALES MANAGEMENT and Tide are the only
sales and advertising publications listed as
MAGAZINES, while Advertising Age, Ad-
vertising and Selling, Editor and Publisher
and Printers’ Ink have to struggle under
the handicap of being merely ‘“miscellane-
ous.

Mirror Magazine
With the 1,300,000 circulation of the
New York Sunday Mirror as a nucleus, A
J. Kobler, as president of Sunday Maga.
zines, Inc., 572 Madison Avenue, is pre.
paring to distribute the magazine section of
the Mirror to Sunday newspapers national.
ly. The 17 Hearst Sunday papers, already
distributing the American Weekly, are, of
course, not included in the program. Also
unavailable are the twenty Sunday and one
Saturday afternoon paper which, beginning
February 24, will distribute This Week, q
magazine published by United Newspapers
Magazine Corporation, New York.

Mr. Kobler has
had to look else.
where. Severa!
papers and _ several
advertisers, he re.
ports, are already in
the fold. “Syndica-
tion” probably will
start in March.
“Several million’
circulation is as-
sured.

The magazine will
continue to be
a tabloid in color.
gtavure, with Jack

A. J. Kobler

Lait as editor.

Mr. Kobler continues as publisher of
the Daily Mirror, but is concentrating
primarily on the new project at this time.
For twelve years he was head of the
American Weekly.

Clark-Hooper Report

First findings in that much-discussed
“coincidental” telephone interview _ study
made by Clark-Hooper, Inc., New York,
for 25 clients, have just been released.
They covered 200,000 interviews made be-
tween 7 and 10 p. m., EST, in “radio
homes” in 21 cities throughout the country
in the first four weeks of the study.

For purposes of the study a “radio
home” is “a telephone subscriber owning
a radio.” No information is revealed on
the estimated “6,000,000 to 8,000,000
families who may have radios but cannot
be reached by telephone.”

Questions Stee asked are:

1. Were you listening to the radio just
now?

2. To what program were you listening?

3. What advertiser put on that pro-
gram?

4. What product is advertised? (Asked
where question 3 fails to elicit answer.)

“Percentage of telephone subscribers,
who are not at home during these hours,”
it was explained, “varies from hour to
hour and from evening to evening, but
within the limits of 13 to 28%.

“The period with the largest percentage
of sets in operation shows 45% (when
averaged for time zones and weighted for
percentage of total sets in each time zone).
The average of all was 36.5%.

“Of the ‘sets in areas,’ the largest aver-
age percentage found listening to any one
program was 29.4%. The smallest was
less than 1%. Average of all was 7.3%.
Of the ‘sets in operation’ found to be
listening, the largest was 66%, the small-

MANAGEMENT

SALES

est less than 1%. Average of all was

20%. ba ea
“Of the ‘sets in areas’ identifying spon-
sor of the broadcast, the largest average
rcentage was 23.6%, the smallest less than
1%, the average of all 5.2%. Of the
‘sets in operation,’ the largest was 53%.
The smallest was less than 1%. The aver-
age of all was 14.4%.
“The average talent cost per program,”
it was said, “is approximately 31% of the
total cost. When the time and talent costs
are combined and the ‘cost per thousand
sets identifying sponsor’ is estimated, the
lowest cost shown is $1.36 and the highest
$62.67. The average is $16.22.”

Daily’s New Agency

Walter J. Daily, for eight years in charge
of advertising and sales promotion for Gen-
eral Electric Company’s specialty appliance
sales department,
has resigned to head
a new advertising
agency to be known
as Walter Daily,
Inc., with headquar-
ters in Cleveland.
Before going with
GE he spent four
years with a New
York agency, then
three years with the
late Tom Logan.
His most spectacular
publicity stunt with
GE was the Gen-
eral Electric Kitchen
which toured the
country two years ago with the “42nd
Street’ special train which advertised the
smash Warner picture of that name.

Walter J. Daily

Agency Promotions

With advertising showing growing pains,
agencies are increasing their staffs and pro-
moting old employes. ... J. F. Kircher
and W. E. La Driere have been made vp’s
in the St. Louis office of the Gardner Ad-
vertising Company. ... W. W. Lewis,
formerly director of the advertising section
of General Motors, is now vp and general
manager of the Campbell-Ewald Company.
.. . New vp’s of BBDO are Stanley P.
Irvin, Harold C. McNulty, and Egbert
White.

nae banr woanen
the WORKER, roartad on Vrvtiamy. Larommry Tit,
4 tented cwmpty af back anmntners sini aonhebe

DAILY WORKER

nified and one of the most conservative
newspapers, to woo the Times’ readers.

1935

FEBRUARY 1,

Columbia Adjusts Rates

CBS announces a new rate card effective
February 23, and claims that, despite the
increased rates per station and per group,
the radio homes added to their coverage
are sufficient to reduce the rate (based on
1, hour P.M. rate) from 69 cents per
1,000 radio homes in 1930 to 51 cents.

Radio Daytime Hours

With no current sales problem on popu-
lar evening hours, the networks are re-
doubling their efforts to popularize daytime
radio. NBC has started an ambitious and
expensive early morning broadcast, with
B. A. Rolfe and a 29-piece orchestra on for
45 minutes three times a week.

Personnel Changes

David Rosenblum has been elected treas-
urer of NBC to succeed H. K. Norton, now
assistant to the president. ——
Hurst (formerly manager of the BBDO
Chicago office) and Louis W. Thomas
(formerly with Lord & Thomas) have join-

ed J. Sterling Getchell, Inc... . Fred
Fleischmann has joined Badger and Brown-
ing & Hersey as a copy and contact man.
Byron H. Goodwillie has been appointed
Western manager of the national advertis-
ing department of Scripps-Howard.

Captain Enoch (Nuck to his friends)
Brown, Jr., has been
appointed general
manager of the
Memphis Commer
cial Appeal by
Colonel James Ham-
mond, president and
publisher. Captain
Brown began in the
newspaper business
as circulation man-
ager of the Nash-
ville Tennessean, in
1919, and was quick-
ly promoted to vice-
president and adver-
tising manager. In
1927 he came to Memphis as vice-president
and advertising director.

Capt. Brown

| IT DARES TO BE DIFFERENT |

Point of
Difference No. 9

DISTRIBUTED
in More Than 8000 Cities
in the United States

The Christian Science Monitor is a

b4

daily newspaper—delivered by mail
into homes in virtually all parts of
the country. It gives to advertisers the
advantages of nation-wide or sectional
coverage and a unique and effective
tie-in with the thousands of local mer-
chants in hundreds of cities who
advertise in the same medium.

THE

CHRISTIAN SCIENCE

MONITOR

Published by The Christian Science Publishing Society

Boston, Massachusetts

NEW YORK OFFICE—500 FIFTH AVENUE

Other Branch Offices: Chicago, Detroit, St. Louis,
Kansas City, San Francisco, Los Angeles, Seattle, Miami,

London, Paris, Berlin, Geneva, Florence

| AN INTERNATIONAL DAILY NEWSPAPER © |

THE SALES EXECUTIVES’ FORUM

This is the fourth of a series of subjects
studied by the Sales Executives’ Club of
New York, under the direction of the Forum
Committee, headed by Walter Mann, of
Walter Mann & Staff, and with the col-
laboration of the editors of SALES MAN-
AGEMENT. These reports, which usually
run from eight to sixteen pages of mimeo-
gtaphed details, are available to participat-
ing members of the club and to non-mem-
bers free of charge in return for their col-
laboration. To non-participating members,
they sell for $3.50 each, to non-participating
non-members, they sell for $5.00 each.

By special arrangement, SALES MANAGE-

MENT’S sales executive readers are eligi-
ble for participation on a non-member
basis by application to Walter Mann,
c/o this magazine.

BY

WALTER MANN
Walter Mann & Staff, New York

PROBLEM —No. 4—One of our mem-
bers, sales manager for a well-known pack-
aged product, wants to have a survey con-
ducted by an outside research organization
to determine consumer attitudes on certain
aspects of his present product and package.
Is the product going over with the potential
consumer public? If not, why not?, etc.
His firm agrees that the results would be
worth while, but does not favor spending
money for an outside organization to con-
duct such a survey, believing that they can
secure the facts through their own sales-
men, branch-offices, advertising agency or
some publication, with practically no direct
money outlay. Our member feels that the
results he would get from men now em-
ployed by the firm, or from the other sources
mentioned, would be governed, to a mark-
ed degree, by the opinions of these men.
He wants an utterly unbiased picture. Your
response to the following questions will
help us all in making decisions of policy on
this very important subject.

|: instead of a dog biting a man,

a man were to bite a dog that,

according to a famous city edi-

tor, would be news. Similarly,
if a professional research man ques-
tions the accuracy of a professionally
made survey on the value of research,
that, too, should be news!

Our study of the findings on this
latest query, made under the auspices
of the Sales Executives’ Club of New
York, indicates that the answers to
Question No. 1—‘Do you find con-
sumer research of value in your sales or
advertising work?’’—are individually
accurate but collectively not true. They
show that consumer research is valued
by 14 out of 16 responders, or in a

[166}

Do You Favor Consumer Research?

ratio of 7 favorable to one unfavor-
able.

Much as research men would like
to believe this to be true, and despite
a sharp and consistently increased in-
terest in the whole subject of consumer
research in the past five years, we be-
lieve that this figure is definitely biased.
Apparently we received replies only
from those favoring consumer research.
This fact (if a fact) is in itself con-
tributory evidence on Question No. 6,
which asks: ‘How do surveys con-
ducted by mail compare in effective-
ness and in cost per response with sur-
veys conducted by personal interview ?”
If these had been personal interviews
the responders would probably not have
been more than two or three to one
in favor of consumer research, instead
of seven to one, as indicated in the
responses. Therefore one black mark
goes in the book against mail ques-
tionnaires.

Fortunately, the rest of the ques-
tions pertained to the desirability of
various types of consumer research and
their possible effects on sales and ad-
vertising activities and policies, and
other questions which can best be an-
swered by those who are familiar with
the subjects. Therefore, the balance
of the report can, we believe, be taken
at full value.

Research Valuable If—

Following is the breakdown of re-
sponders into groups, i.e.: Group 1—
advertising agencies, merchandising or-
ganizations, and media. Group 2—
manufacturers of consumer-sold prod-
ucts. Group 3—miscellaneous, includ-
ing technical products. .. .

On Question 1, we find that all 6
responders in Group 1 consider con-
sumer research to be of value to them
in their Sales and Advertising work;
5 out of 6 in Group 2 think the same
way as do 3 out of 4 in Group 3. A
typical qualifying response was: “Yes,
consumer research is valuable if done
by persons of experience and imagi-
nation.”

One response, however, is unusual
enough to warrant full quotation in this
article, viz.: “By research we dis-
covered that we were wasting money
in advertising to the wrong class.
We changed our advertising and
selling technique, but unfortunately

too late. The firm went into
receivership as a result of wrong poli-
cies. This is definite proof of the
need for surveys—not once in awhile,
but constantly, for as times change, so
do selling conditions. Sales methods
must be pliable and plastic to fit these
times. What was a good policy 20
years ago may be ruinous today.”
Question No. 2: “Did your depart-
ment (or allied departments) make
any consumer studies in 1934?" If so,
describe type and character of survey
made, indicating whether done (a) by
your own organization, (b) by an ad-
vertising agency (c) by an advertising
medium, (d) by an outside research or-
ganization. Answering the first part
of Question No. 2, 10 of our 16 te-
sponders had made consumer studies
in 1934, 4 had not, 2 did not answer.

Worth the Money?

Interesting, indeed, is the break-
down to the second part of Question
No. 2. Surveys done ranged from a
study of bathroom product design to a
study of the effectiveness of radio pro-
grams. Fifteen of the 26 studies had
been made by the responders’ own or-
ganizations, 8 by their agencies, 5 by
outside organizations, and 1 by an ad-
vertising medium. The average cost
of 15 out of 26 surveys made by 10
“yes” responders was $2,300. Sur-
veys reported on ranged in cost from
$200 to $12,000. Asked whether
these consumer research studies paid
out, 17 responded “‘yes,’’ 2 said ‘‘no,”
and 7 did not answer.

Question No. 3 asked: “Do you
know of specific sales or advertising
results that came from application of
the facts thus secured, either directly
or indirectly?“ Out of the 26 surveys
listed, only 3 were not accounted for.
One of the most interesting of these
responses, i.e., that of the responder
on the bathroom design study, said that
a change in the type of product had
resulted in a saving of more than
$20,000 on a $2,000 research investi-
gation, by virtue of not taking the
wrong design. A competitor, it is said,
took the wrong design and lost his
shirt. On the other hand, the prod-
uct design which was selected by the
responder “is rapidly becoming a big
success.

Question No. 4: “What kinds of

SALES MANAGEMENT

ae ee

consumer research have been of value
to you’””"—showed the following types
to have been of value to responders:
Product—-new uses, 9; consumer wants,
9; product present uses, 8; product
markets, 7; product packaging, 7;
product performance, 5; consumer re-
ceptivity, 4; product areas, 3; con-
tainers, 3; product labeling, 2. The
following subjects came in for one
mention each: Consumer guarantees,
product competition and jobber tre-
ceptivity.

Question No. 5: ““‘Which gives you
the most unbiased facts on which to
base sales and advertising decisions?”
—(a) research done by your own or-
ganization, (b) research done by ad-
vertising agency, (c) by an advertising
medium, (d) by a research organiza-
tion? Of our 16 responders, 4 felt
that research work done by their own
organization was the most unbiased ;
2 thought advertising agency research
was. None mentioned advertising
media. Eight favored outside organiza-
tions for unbiased research work. Two
did not answer.

Personal vs. Mail Surveys

Question No. 6: ‘How do surveys
conducted by mail compare in effective-
ness and net cost per response with sur-
veys conducted by personal interview ?”
Of our responders, 11 think that in-
terviews are better than mail ques-
tionnaires; 4 did not answer; 1 had
no choice. Answering the question
“Which costs more?” there seemed to
be a serious absence of opinion on this
subject, since 7 out of 16 responders
did not know. However, 8 said inter-
views were more costly, whereas 1 said
that mail responses were. Apparently,
apprehension regarding the high cost
of interviewing continues to exist. Our
own experience had been that 20% is
an excellent return on a mail question-
naire, i.e., 1 out of 5 mailed. If, with
the present 3 cent postage rate, the
total cost of the questionnaire, en-
velope, folding, mailing, addressing,
etc., is not more than 3 to 4 cents, the
total cost is somewhere around 30 to
35 cents per actual response. Since
the typical consumer interview can be
bought for 35 cents or less, the fact
that interviews provide much more
complete responses than mail ques-
tionnaires do should make personal
interviews much more desirable, gen-
erally speaking, than the mail ques-
tionnaire.

Taking it all in all, it would appear
from these responses that consumer re-
search has a provable place in the aver-
age manufacturer’s sales and advertis-
ing budget. Naturally the quality of
all research is not of equal a You
get exactly what you pay for.

FEBRUARY 1, 1935

Mr. and Mrs. Worker’s Comfort
Featured in Industrial Art Show

This year the Industrial Arts Ex-
position, sponsored by the National
Alliance of Art and Industry, will be
held in the Rockefeller Center Forum,
New York, April 15 to May 15.

The plan features the welfare of
the American worker of modest means.
He is the focal point and the exposi-
tion is built around his interest in
homes, home appliances, transporta-
tion, communication and leisure.

This is the second annual show;
last year it was principally designed
and executed to, help the industrial
designer. This year the show will be
staged by the manufacturers them-
selves, with Thomas J. Maloney, of
the New Jersey Zinc Company, exhibi-
tion manager, and Alon Bement of the
National Alliance, executive director.

While the exhibit will feature prod-
ucts within the price range of Mr.
and Mrs. Average Man, an attempt
will be made to educate them on the
importance of and appreciation of
good design. One of the outstanding
exhibits on the main floor will be
Frank A. Wright's ‘‘Broad Acre City,”

which will show how modern modes
of communication are changing the
set-up of cities which are not confined
within fixed geographical limits, as is
Manhattan Island.

The manufacturer’s exhibits will be
in groupings around modern rooms
designed by leading designers.

Among the firms which have al-
ready engaged space at the Industrial
Arts Exposition, which will occupy all
of the 44,000 square feet of Rocke-
feller Center Forum, are the follow-
ing:

American Car & Foundry Co., American
Cyanamid Co., Bakelite Corp., Breskin &
Charlton Publishing Co., Doehler Die
Casting Co., General Alloys Co., Interna-
tional Nickel Co., International Silver Co.,
Raymond Loewy, Montgomery, Ward &
Co., National Retail Dry Goods Associa-
tion, Owens-Illinois Glass Co., Philco Radio
Corp., R. C. A.-Victor Corp., Sears, Roe-
buck & Co., Eugene Shayne, The Shelton
Looms, Sherwin-Williams Co., Sight Light
Corp., Tennesseee Eastman, Toledo Scale
Co., Toledo Synthetic Products, Inc., Wal-
ter Teague, Underwood & Underwood,
Van Doren & Rideout, Western Clock Co.
and Ben Nash.

Want to

KNOW SOMETHING
about WOMEN ?

Women—because of their professional interest in values
—make the most profitable audience for an advertiser.

We've proved that conclusively with KSTP in the
9th U. S. RETAIL MARKET where we've built up the
largest and most responsive “Women’s Audience” during

the daytime.

Here’s just one of the potent findings

(others on request) from the recent Ernst & Ernst

Survey:

From NOON to5 P. M.
Station B average audience
82.8% ... KSTP audience 50.6%

—about 60% GREATER!

TO OPEN THE FAMILY PURSE IN THE NORTHWEST

TALK TO THE “WOMEN’S AUDIENCE”

OF KSTP

For Northwest Market Facts

Just

Ask: FORD BILLINGS, General

Sales Manager, KSTP, Minneapolis, Min-
nesota, or our

NATIONAL REPRESENTATIVES: In
New York, PAUL H. RAYMER CO....

in

Chicago,

Detroit, San Francisco,

GREIG, BLAIR & SPIGHT, INC.

KSTP

MINNEAPOLIS—ST. PAUL
DOMINATES THE 9TH U. S.

RETAIL MARKET

[167]

Doubting Thomases Have to Be
Shown a Guarantee Isn’t Bunk

A few days ago a mail-order house with
which I am connected received this letter
from a customer:

“It was truly a surprise to find, in open-
ing my morning’s mail, your check refund-
ing the purchase price of material which I
recently returned to you as not quite satis-
factory for my purpose.

“Your generous return of my money has
demonstrated the righteousness of your
company, and I
thank you for this
courteous doing.”

The _ significance
of this letter lies in
the opening phrase,
“It was truly a sur-
prise...” Why
should it be a sur-
prise that a com-
pany—any reputable
company—fulfills its
obligations?
This particular
house advertises a
money-back guar-
antee. Since it en-
deavors to give
honest value, re-
quests for refund are infrequent. But that
is beside the point. In every case, where
merchandise is returned for a legitimate
reason, a refund check is immediately is-
sued as a matter of course.

Nor is this an unusual case. I am
personally acquainted with most of the
large mail-order operators of the country,
and have had occasion from time to time
to delve rather intimately into their records.
I have yet to find a single case where there
is any hesitation or evasion in the making
of refunds. It is not that we are particu-
larly righteous. But anything other than
a straightforward policy would be foolish
and suicidal for a company that purposes
to remain in business.

But the public still refuses to shed its
doubts. A man will walk into a strange
retail establishment and pay $25 for an
article that happens to strike his fancy, but
when it comes to sending a tenth of that
sum to a reliable mail-order house, he may
hem, haw and hesitate. This condition is
the gravest problem that confronts those
of us who merchandise by mail. In many
cases approval selling is impracticable—
the expense of carrying a large number of
small accounts is prohibitive. The seller
must get cash with order, and where the
amount exceeds a dollar or so, the full
measure of resourcefulness and ingenuity
is required. Selling by mail is not as sim-
ple as it looks!

Maxwell Droke

A “Thank You” Note With the
Bill Cements Friendly Spirit

Mr. T. H. Dickson, Jr., of St. Paul, sends
me this letter which The Emporium, a local
department store, addressed to his mother,
at the close of the year. .““I only wish,” he
remarks, “that there were more of these

[168]

BY MAXWELL DROKE

Standing Invitation

Mr. Droke is always glad to
criticize sales letters and direct mail
messages for our subscribers. There
is no cost or obligation for this
service. Address him in care of
SALES MANAGEMENT, enclosing a
stamped, addressed envelope.

human contacts in circulation.” And isn’t
it rather amazing that there aren't?
“Month after month, you receive a state-
ment from us, and as regularly, we receive
your remittance to cover. This accomplish-
ed, the ethics of business have probably
been complied with, but we feel that we
must deviate from strict business form
long enough to tell you of the gratification
that is ours when we review your account.
“It paints a graphic picture of your many
visits to our store, and we sincerely hope
that we are doing our part in making these
visits enjoyable as well as profitable, and
that our entire organization radiates the
cordial feeling that exists toward you.”

Direct Mail in Simple Garb
Ofttimes Outpulls Fancy Stuff

Every once in a while someone bobs up
with the question of whether or not our
direct mailings should be impressively
garbed in fine raiment. I am among those
who hold that all persons are favorably im-
pressed by a quality product, regardless of
their station in life. They may not appre-
ciate the finer points of a splendid letter-
head. But instinctively they feel that it is
a thing of worth.

But—and here’s the point that many
overlook—in some lines of business we do
not particularly care about creating an
atmosphere of quiet dignity. Many a
shrewd mail merchandiser insists on scream-
ing headlines and smashing colors. And
he must buy at low cost, for his profits are
reckoned in pennies. I have made some
rather interesting experiments for certain
of these operators, and have reached the
very definite conclusion that in many cases
it is disastrous for them to attempt to
“dress up” their offerings. Occasionally,
the homely cheapness of a letter may be-
come a business asset.

Mayhap this is heresy. But I only know
what I read in the test records. And they
show that overalls are often as useful as
a tail coat, white tie and topper.

Even Worst ‘“‘Camera Phobias”

Should Be Cured by This

Again my hat is off—and if I keep this
up I'll be likely to contract pneumonia in
this Winter weather—but I must pay my
respects to the PhotoReflex Studios, op-
erating through leading department stores.
Here’s a letter they have been sending to
men. I think it is distinctly Grade A:

“We think men don’t like to have their
pictures taken, because they don’t like what

photographers do to them. We think men
are a little bit bashful about having their
chins pushed around and their cowlicks
even ever so delicately commented upon.

“Men who have tried our PhotoReflex
system have found out that they practically
take their own pictures. Here's how it
works:

“You sit down before a set of five mir-
rors. You survey yourself in profile from
one side, then the other. You try out the
full face. You move your head, eyes, mouth
any way you want to. All this time the
operator is well and completely hidden.
When you get an expression you like, you
say so—and he takes the picture.

“We've seen a lot of cases in which a
positive phobia against cameras yielded to
produce excellent portraits, full of char-
acter and personality.

“We wish you would come in soon and
try this new idea. It doesn’t require any
appointment; it isn’t hard to find; express
elevators close to our Washington Street
door, get off at eighth floor, and there you
are.

“For the rest of January—for men only
—we are waiving the customary deposit
and advance order requirement. Come on
up and see!”

The Post Office Department
Gnashes Teeth at “Rivals”

Comes now my most persistent corre-
spondent, the United States Post Office, with
a long, chatty letter relating to their pet
peeve:

“Information upon which the Post Office
Department must take vigorous action dis-
closes that the Federal statutes giving the
Department an absolute monopoly of the
transportation and delivery of letters by
regular trips or at stated intervals over all
post routes, are being violated constantly.”

This long, breath-consuming sentence
means, briefly, that J. Farley & Company
is again up in arms. It seems that certain
business houses and public utilities con-
tinue the practice of delivering statements,
etc., by private messenger, instead of. drop-
ping them in the mail-box where Uncle
Sam can derive some highly desirable rev-
enue. In case you are a bit puzzled by the
reference to “post routes,” the letter ex-
plains:

“Practically all routes of travel are ‘post
routes,’ including all railroads, all letter
carrier routes established in any city or
town; and all public roads and highways
while kept up and maintained as such.”

Which seems to pretty well cover the
ground.

The letter also touches upon section 947
and 1020 of the Postal Regulations, which
provide that private receptacles intended
for delivery of mail matter by carriers shall
be exclusively so used. We have com-
mented upon this provision from time to
time.

So far as I know, the much-talked-of
test case in this connection has never been
made. But I continue to observe quite 4
ws of “foreign matter” in the family mail-
Ox.

SALES MANAGEMENT

The Doctor Looks at Sales Management

Analysis
of

Blood:

Bloodstream free of impurities (cut-rates, rebates, and other deleterious substances):
Renewal of blood supply rapid. During the last six months (period in which subject
was under observation) renewal rate was highest in his medical history: 71.68%.
Red Corpuscle Count: Analysis of circulation shows number highest since December,
1932. Has fully recovered from effects of malnutrition epidemic of Depression cycle.
For details of that plague see “Pernicious Anemia Among Magazines and Their
Mortality Rates" in Annals of American Medico-Journalism Vols. 1930-34.

Reflex

Positive. Instant reaction from readers when studying certain articles. Sometimes
these knee jerks indicate agreement with articles; again they indicate dispute with

Aetion: points advanced. Prognosis of both reactions: Healthy condition. Flabby muscle
response or none at all would call for immediate editorial operation.
Good. No editorial curvature toward pet projects or people or away from "dan-
Posture: gerous" subjects. No leaning backward in ultra-conservatism, or radical forward

slouch.

Weight:

Normal for height. No excess fat in editorial content, but shows tendency to gain in
direct ratio to nourishment supplied by advertisers. A paunch of words bulks large
and might impress the laity, but all doctors know it slows up a man, robs him of his
punch. Weight is all in hard, firm meat.

Height:

Patient is growing rapidly. Chart shows his dollar-advertising stature as follows:

Jan. 15 issue up 109°, over corresponding 1934 issue.

Jan. | and 15 issues up 85% over corresponding 1934 issues.

Jan. | and 15 issues up 96%, over corresponding 1933 issues.
Month of Dec., 1934, up 45% over corresponding 1933 issues.
Month of Nov., 1934, up 61% over corresponding 1933 issues.

Last 3 months (Nov.-Dec.-Jan.) up 62.5°/, over corresponding

months of 1933-34.
Entire year 1934, up 38°, over 1933.

Head Size:

Normal, despite gains in circulation, weight and height. The subject is under the
constant care and observation of experienced doctors who neither kid him nor them-
selves—at least not very much or pe slg While they know his possibilities of growth
and improvement it is doubtful if the subject will ever quite live up to all their hopes
and expectations.

Treatment:

Continuation of present regimen heartily recommended.

FEBRUARY 1

» 3955

[169]

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Booklet on request.
S. LUND and
SORENO LUND, Jr.

DAYTONA

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Surf and sun bathing on the

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1170]

Claim New Meinograph
Color Plate Process
Cuts Costs by 35%

——— Process, Inc., Detroit,
is now conducting in Chicago a series
of demonstrations of a new method
of making color plates. Color experts
and engravers are showing much in-
terest in the procedure which, it is
asserted, reduces cost by 35% or more
and at the. same time does away with
most of the need for fine register.

In ordinary four-color work all four
plates carry full photographic details
of the subject. In the Meinograph
process the detail is carried only on
the black plate. Red, yellow and blue
plates simply lay on the color with a
total absence of lines. As a result,
when there is off-register up to an
eighth of an inch or more there is little
or no feather-edge or “vibratory”
visual effect.

It might be said that this new
method reverses the conventional prac-
tice in color printing. Heretofore, the
color plates carried the details while
the purpose of the black plate was to
intensify areas.Under the new system,
the color plates are solely for the con-
veyance of color, with the black plate
carrying all the burden of form, char-
acter and detail.

The developers of the new process
do not contend that the method will
supersede the present four-color sys-
tem. They do contend that, because
of the simplicity of their method, and
its low cost, it opens up an entire fresh
field for color printing; that it will
put color printing within the grasp of
a great number of enterprises which,
because of costs, have been unable to
use it.

In the manufacture of the Meino-
graph color plates a piece of Cello-
phane, or some similar substance, is
laid over the picture to be reproduced.
Colors are applied to the Cellophane,
or other film. A white shield is
slipped under the film while the color
plates are being made to remove the
details of the original from the eye of
the camera.

After the color plates have been
photographed, the colored film is re-
moved and the original picture photo-
graphed for the black plate. The
process has been patented. Color
printers are being licensed to use it.

Jack Thorn, oil broker and storage steel
contractor, who disappeared from
Dorado, Arkansas, October 7, 1926, is be-
ing paged. A. F. House, of Little Rock,
takes a half-page in the Oil and Gas Jour-
nal to reproduce Mr. Thorn’s signature, to
give his description and to offer a “rea-
sonable reward” for information leading to
his positive identification.

SALES MANAGEMENT

Booklets reviewed below are free unless
otherwise specified, and available either
through this office or direct from the
publishers. In addressing this office,
please use a separate letterhead for each
booklet requested, to facilitate handling.
The address is Sates MANAGEMENT
Readers’ Service Bureau, 420 Lexington

Avenue, New York, N. Y.

Surveys for which a charge is made are
so indicated. Requests for these, accom-
panied by the purchase price, should be
mailed direct to the publishers.

T.V.A. Significance Shown
by McCall Field Study

Significance of the Tennessee Valley
Authority electric program is commented
upon at length in an interesting booklet
resulting from a first-hand investigation of
the development by editors and _ investi-
gators of MecCall’s magazine. Published
in January for electrical merchandise manu-
facturers and their advertising counselors,
the 28-page spiral-bound volume, effective-
ly illustrated, offers food for thought to
manufacturers of other products which
will be sold and used in this and other
areas. The four steps in the program
are: Cheap current, lower-priced appliances,
sales on easy terms, and education and
promotion. Examples of many ways in
which the program is working in com-
munities mow securing T.V.A. current,
with instances of increased use of current
and greatly increased sales of appliances,
are quoted. Cooperation of T.V.A. and
the privately owned Georgia Power Com-
pany, the remarkable consumer laboratory
made possible in the new town of Norris
where all homes are electrified and where
records will be kept by the T.V.A. of
power consumption and appliance use, and
a final section voicing six conclusions as
to how this experiment will affect con-
sumers throughout the country make the
publication of immediate interest. Write
for "An Unbiased Study,” addressing Don-
ald Parsons, the McCall Company, 230 Park
Avenue, New York City.

A New Slant on Boston

Entree to the Boston market through
the medium of car cards, based on the
successful experiences of advertisers using
this medium exclusively or in combination
with other local media, is demonstrated
in a new promotion booklet published by
the Eastern Advertising Company, titled
"A New Slant on Boston.” Certified cir-
culation, audited by the street railway
companies as required by law, is) now
offered advertisers using this medium. A
number of testimonials of advertising suc-
cesses in the market, including Mueller’s

Pi | Saat S$

COMMERCE PHOTO-PRINT
CORPORATION
I WALL STREET
233 Broadway 56 Pine St.
80 Maiden Lane 33 W. 42nd St.
Digby 4-9135-6-7-8

1935

FEBRUARY 1,

spaghetti, California Walnut Growers,
Rem, Del Monte and local department store
experience are cited. To an extent greater
than in other metropolitan centers, accord-
ing to this study, the economic and social
life of Boston is closely interwoven by
one of the finest transportation systems in
the world. Worth investigating. Write
T. F. Joyce, vice-president, Eastern Adver-
tising Company, 209 Washington Street,
Boston; or C. G. Hafley, sales manager,
Eastern Advertising Company, 220 West
42nd Street, New York City.

Detailed Report on Dealer
Survey Published by NBC

Publication of the findings of two sur-
veys made for the National Broadcasting
Company by the Psychological Corporation
on the subject of dealer preference for
advertising media was commented on in
this column in the issue of January 1.
More recently a detailed report of these
surveys has been completed and published,
titled “A Study of the Relative Effective-
ness of Major Advertising Media.” This
contains not only complete analyses of the
responses in the three fields—food, drugs
and gasoline dealers—but also a descrip-
tion by the Psychological Corporation of
the method employed and the factors in-
volved in securing and judging the returns.
Subscribers who sent for the first study
will no doubt receive from NBC this new
and complete report. Others should
write for both, addressing W. C. Roux,
National Broadcasting Company, Radio
City, New York.

Milwaukee Journal Gives
Circulation Analysis of Market

A most interesting and informative mar-
ket study, based solely on newspaper cir-
culation and its relation to buying power
indices, is that just issued by the Milwau-
kee Journal in behalf of its daily and
Sunday coverage of the city and state. Un-
like many newspaper market studies, it
contains no lists of‘ dealers or distributors,
no suggestions to advertisers based on
peculiarities of local distribution factors,
no analysis of retail trade, no comparison

with other markets on that score, no de-
scriptions of the city or its environs.
Utilizing only the rather humdrum cir-
culation figures, for the 71 counties and
952 cities and towns in Wisconsin, and
12 counties and 80 cities and towns in
Upper Michigan, the study sets out to show
coverage—and most effectively accomplishes
that result. From this 32-page booklet
the advertiser can quickly check his ad-
vertising effectiveness throughout the mar-
ket in question, and can rate the buying
power provided by this medium and others
in the market in terms of coverage of
rental areas, that being the one gauge of
income used in the study. Write for “On
the Way—Where and to Whom?” ad-
dressing C. R. Conlee, the Milwaukee Jour-
nal, Milwaukee, Wisconsin.

More Farm Market Evidence

Where two years ago a farmer paid 1,455
bushels of wheat for a new Ford car,
he now needs only 626 bushels. Or, if
he wants a new Maytag washer today, it
costs him the equivalent of 117 bushels of
corn, where two years ago he had to lay
out 712 bushels. These and many sim-
ilar facts pointing to the revived purchas-
ing power of the farmer, and his actual
buying as shown by comparisons of de-
partment store vs. rural sales, are brought
out in a brief titled, “Why the Farm Mar-
ket Offers the Best Sales Opportunity for
1935.” SALES MANAGEMENT subscribers,
familiar with the recent analysis of this
magazine on the subject of increased busi-
ness in farm markets, will find this brief
valuable for its additional information,
based on studies of the Meredith Publish-
ing Company, publishers of Successful
Farming. Write E. F. Corbin, sales direc-
tor, Meredith Publishing Co., Des Moines,
Iowa.

IN BALTIMORE

76 National Advertisers

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POSITION WANTED

PAPERS AND SPEECHES written on credits,
credit analysis, financial statements and analysis
and business topics, by successful business executive.
Also advice on credit problems. All transactions
treated strictly confidential. References furnished
to interested parties. Address Business Adviser, Box
424, Sates MANAGEMENT, 420 Lexington Avenue,
New York, N. Y.

Being NEITHER YOUNG NOR BEAUTIFUL,
I concentrate on being useful (vide Ben Franklin).
Have been a trade paper editor for years, and now
a free lance in search of work. Can write forceful
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Inquiries imply no obligation whatever. Frank W.
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Phone: State 1266.

| GIBBONS KNOWS CANADA |

have been watching, with a high degree of
interest, an experiment under way in an industry
that, in times past, has had its full share of price-cutting
troubles.

(() ise been THE HORSE TRADERS: We

This experiment, we might say paren-
thetically, is one which emerged out of the NRA. It
—and other sound developments of its kind—explains our
continued belief that there are many values tangled up
in the whole complicated machinery of the Recovery Act
which are too real and too tangible and too important to
be tossed aside because other phases of the movement have
turned out to be unworkable. . . . But about the experi-
ment: This industry, like dozens of others, has suffered
from foolish, irrational and predatory price-cutting mostly
because of a lack of accurate facts about the volume of
business being done by the industry as a whole. Every-
body in the industry mistrusted everybody else, and this
unhealthy mania was nourished by sharp buyers who
played one salesman against another. Prices were always
being depressed, and it took nothing more than the thin-
nest figment of a rumor to give the whole industry the
price jitters. Then somebody got sensible. The
industry had been forced into some semblance of coopera-
tion through the necessity for working out a code ana
getting it through the legal labyrinth at Washington.
The industry adopted a version of the open-price agreement,
through which every manufacturer in the group reported
(with copies of bills) to a central office, the business taken
each working day, with the prices at which it was taken.
Each morning each participant gets a summary of the total
business done the day before, and he can immediately
figure what percentage of it was done by his organization.
. Now, if the market is ‘‘off’ for a week, everybody
knows the drop in business is general. Heretofore, if one
company’s sales slumped for a solid week, the president
got panicky, wired his salesmen to get out and do some-
thing and to cut the price half a cent or more if necessary.
News of that price cut usually traveled like light, and
before noon a general price war was under way.
Now, if a buyer attempts to claim that a competitor de-
livered a stock at a price much below the established
market range, any manufacturer can ask the central office
to check back to get the exact truth of the claim. .
It will be extremely interesting to see what this group
thinks of this plan when it has had the chance to work
for another eight or ten months. Short-sighted individ-
uals in it, still steeped in the skepticism and suspicion
of years of horse-trading, now and then show a tendency
to kick over the traces. But this industry is well manned
at the central office, and our guess is that perhaps millions

[172]

of doliars will be saved by common-sense cooperation of
this kind during the first full year of the plan’s operation,

. The term “industry cooperation’’ is spoken of so
frequently in connection with discussions of price-fixing
that such valuable lines of activity as the pooling of in.
dustry facts get far too scanty consideration. Certainly
the instance we have mentioned is one striking example
of the way an industrial group can intelligently go about
the business of raising its efficiency in marketing, and, by
sheer common sense, can protect itself against unscrupulous
buyers whose years of practice have made them adept at
the fostering of price wars. The only catch is that, in
most industries at least, men haven’t learned even the
rudiments of working together like good sports and sane
business men.

=~ )

ARRIMAN IS RIGHT: Henry I. Harriman,
lH president of the United States Chamber of Com-

merce, addressed a meeting of the Pittsburgh
Chamber last week and declared himself unequivocally
an Optimist for 1935. He pointed to a 15% increase in
retail sales last year; a rise of one and one-half billions
in farm income; the fact that the motor industry expects
its biggest year since 1930; the plans of the United States
Steel Corporation to spend $45,000,000 on plant improve-
ment, as a few of the reasons for his optimism. He says,
“It has been the history of depression that there are about
three years of liquidation and deflation and then a period
when business staggers along with consumers’ goods in-
creasing, after which comes a real upturn and better times
are unmistakable. We are just now entering upon the
era of better times.”” . . . We agree with Mr. Harriman.
The signs unmistakably point to better business. We are
inclined to go just a step further than Mr. Harriman,
however, and advance the opinion that business should be
and can be much, much better if company heads and their
salesmen adopt a more aggressive tone of confidence and
cease and desist from defeatist talk. This doesn’t mean
that they must necessarily approve of everything that Wash-
ington is doing. As Mr. Harriman pointed out, better
times are coming, either because of or in spite of what
the Administration is doing. In other words, take your
choice—and it doesn’t make any great difference.
Confidence, as shown by larger and better trained sales
staffs, larger and better planned
advertising campaigns, will bring Si (\
back bigger rewards in 1935 un- } on !
less all signs are wrong.

SALES MANAGEMENT